Silicon Valley Bank’s Chinese partner buys stake in joint venture

BEIJING (Reuters) – Silicon Valley Bank’s China affiliate will become a wholly-owned unit of Shanghai Pudong Development Bank after approval to change its name to Shanghai Innovation Bank, a Chinese financial regulator said late on Friday.

The collapse of Silicon Valley Bank (SVB) last year was one of the biggest in US banking history and left the joint venture with Shanghai Pudong Development Bank (SPD) – SPD Silicon Valley – in limbo after no buyer emerged to acquire SVB’s stake.

In a statement on Friday, the Shanghai branch of the National Financial Regulatory Administration said it had agreed for the bank to adjust its shareholder ratio so that SPD holds 100 percent of the shares and adjust the bank’s share capital to the equivalent of 1 billion of yuan ($141). million) from 2 billion.

(1 USD = 7.0900 Chinese Yuan Renminbi)

(Reporting by Joe Cash; Editing by Stephen Coates)