UPDATE 1-Silicon Valley Bank to form JV in China

* Silicon Valley to invest $75 million in JV

* To own 50 pct stake

Dec 21 (BestGrowthStock) – Silicon Valley Bank, the banking unit of
SVB Financial Group (SIVB.O: ), said it has signed a joint
venture agreement in China with Shanghai Pudong Development
Bank Co, Ltd (600000.SS: ).

Silicon Valley will make a capital contribution of $75
million to the joint venture and own a 50 percent stake in it,
the company said in a regulatory filing.

The joint venture has to meet the approval of the U.S. and
Chinese regulatory authorities, SVB said.

SVB had said in October that it was working towards
establishing a banking platform focused on technology and life
science companies in China.

In October, the company also opened an international
subsidiary in Beijing – SVB Business Partners (Beijing) Co Ltd.
It also has invested in Chinese companies like Zhejiang
Uni-power Guaranty and Zero2IPO Group and other venture capital

The company hosted its first board of directors meeting in
Shanghai in November — the first time it has held its board
meeting outside the United States.

China Mobile (0941.HK: ) had bought a 20 percent stake in
Shanghai Pudong Development Bank in March for about $5.8
billion to help the mobile operator dominate the country’s
nascent mobile e-commerce market. [ID:nTOE6290AD]

Shares of the Santa Clara, California-based SVB closed at
$52.84 on Tuesday on Nasdaq. Their value has risen 16 percent
since the company opened its Beijing unit in October.
(Reporting by Rachel Chitra in Bangalore; Editing by Roshni

UPDATE 1-Silicon Valley Bank to form JV in China