China's 1st bank dedicated to technology companies

The joint venture bank started by Shanghai Pudong Development Bank and United States' Silicon Valley Bank held a ceremony on Tuesday to mark the official launch of China's first bank dedicated to technology companies.

With a 1 billion yuan ($157 million) investment, each company will hold a 50 percent stake. SPD Silicon Valley Bank is the first joint venture bank since 1997 to win authorization by the country's Banking Regulatory Commission.

The bank will initially provide onshore financial services in US dollars. It will also provide customized services and products, via a special credit analysis model, in accordance with the companies' development stages.

As the first bank of its kind in China, it will mainly target industries such as hardware, software, Internet, mobile, life sciences, biology technology, clean energy and new materials.

Due to current laws and regulations, the bank will only be able to provide foreign currency services, but no renminbi services in the next three years. This means that domestic high-tech companies seeking financing from the bank will have to do it in a roundabout way.

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