China's Andon Health Admits 5% Of Its Money Was Parked In Collapsed SVB

China’s Andon Health, a maker of medical devices, says it has full access to funds parked at Silicon Valley Bank after the US government intervened to backstop all the deposits at the failed lender, Laura He reported for CNN.

Photo Insert: The funds the Tianjin-based company had parked in SVB amounted to approximately 675 million yuan ($98 million).

The Tianjin-based company, which manufactures consumer health devices and supplied COVID test kits to the US during the pandemic, has cash deposits at SVB worth 5% of its total cash and cash equivalents.

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

“Our deposits at SVB can be used in full and have not suffered any losses,” the company said in a Tuesday filing to the Shenzhen Stock Exchange.

Silicon Valley Bank was shut down on Friday morning by California regulators and was put under the control of the US Federal Deposit Insurance Corp. (FDIC).

Trading of SVB shares was halted Friday morning after falling more than 60% in premarket trading following a 60% decline on Thursday when the bank sold off a portfolio of US Treasuries and $1.75 billion in shares to cover declining customer deposits.

The US government took extraordinary measures on Sunday to avert a potential banking crisis following the collapse of SVB. Those measures include guaranteeing that customers of the bank will have access to all their money starting Monday.

SVB 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 local partner Shanghai Pudong Development Bank, said Saturday that its operations were “sound.”

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