Andon Well being: Chinese business says it has complete access to SVB-parked funds

Hong Kong(CNN) China’s Andon Well being, a maker of healthcare devices, says it has complete access to funds parked at Silicon Valley Bank, just after the US government intervened to backstop all the deposits at the failed lender.

The Tianjin-primarily based business, which manufactures customer wellness devices and supplied Covid test kits to the United States for the duration of the pandemic, has money deposits at SVB worth five% of its total money and money equivalents.

That amounts to roughly 675 million yuan ($98 million), according to calculations primarily based on its most current earnings report.

“Our deposits at Silicon Valley Bank can be made use of in complete and have not suffered any losses,” the business stated in a Tuesday filing to the Shenzhen Stock Exchange.

The announcement comes just after the US government took extraordinary measures on Sunday to avert a possible banking crisis following the collapse of SVB. These measures contain guaranteeing that shoppers of the bank will have access to all their income beginning Monday.

By undertaking that, US regulators aimed to avert additional bank runs and to support organizations that deposited massive sums with impacted banks to continue to make payroll and fund their operations

The collapse of SVB, which courted Chinese commence-ups, has triggered widespread concern in China, exactly where a string of founders and organizations rushed to appease investors by saying their exposure was insignificant or nonexistent.

So far, additional than a dozen of firms have issued statements attempting to pacify investors or clientele, saying that their exposure to SVB was restricted. Most have been biotech organizations.

SVB, which worked with almost half of all venture-backed tech and healthcare organizations in the United States ahead of it was taken more than by the government, has a Chinese joint venture, which was set up in 2012 and targeted the country’s tech elite.

The SPD Silicon Valley Bank, which was owned 50-50 owned by SVB and nearby companion Shanghai Pudong Improvement Bank, stated Saturday that its operations have been “sound.”