CX Daily: 2008 Redux? SVB Collapse Raises Questions About Banking Oversight

Beijing welcomes Ma Ying-jeou’s visit to the Chinese mainland. A unit of China Cosco will invest in a new container terminal in Egypt

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Banking /

Cover Story: 2008 Redux? SVB collapse raises questions about banking oversight

It took just 48 hours for Silicon Valley Bank (SVB), a key lender serving half of U.S. venture capital-backed startups with over $210 billion in assets, to collapse, making it the second-biggest banking failure in U.S. history.

Although the government is bailing out its customers by backstopping all deposits, the collapse of two more smaller banks within a week have sparked concerns about the overall health of the U.S. banking sector, sparking worries that another global financial crisis like that of 2008 is looming.

PBOC official warns SVB failure shows hazard of rapid rate hikes

Research /

China launches campaign to tackle pressing domestic challenges

The Communist Party of China (CPC) launched a campaign to promote research into an array of problems including advancing science and technology self-reliance, preventing financial risks and refining the country’s legal system as it faces challenges that are more “serious and complex than ever.”

According to a 12-point plan issued by the General Office of the CPC Central Committee Sunday, China has an “urgent need” to grasp the state of affairs in the country through on-the-ground research and investigation. It urged party members to follow a problem-solving approach and transform the survey results into practical solutions.

Taiwan /

Beijing welcomes ex-Taiwan leader’s visit to the mainland

Beijing said Monday that it welcomes former Taiwan leader Ma Ying-jeou’s visit to the Chinese mainland next week and offered to provide assistance for the trip.

Ma will lead a group of dozens of Taiwan students to the mainland from March 27 to April 7, during which he will pay respects to his ancestors in Xiangtan, Central China’s Hunan province, said Hsiao Hsu-tsen, executive director of the Ma Ying-Jeou Foundation, at a press conference Monday. Ma will also visit several other cities such as Shanghai and Chongqing, during which the students traveling with him will be able to speak with their peers on the mainland.

FINANCE & ECONOMY

People look at signs posted outside of an entrance to Silicon Valley Bank in Santa Clara, Calif., Friday, March 10, 2023. Photo: VCG

SVB /

SVB collapse catches Chinese tech startups, private funds off guard

Fallout from Silicon Valley Bank’s (SVB) speedy collapse rippled through China as the country’s tech startups and investment firms, many of which used to see the lender as their default choice to park overseas funds and custody assets, were caught off guard.

Chinese startups and investors rushed to withdraw funds from SVB after U.S. regulators stepped in to protect depositors at the fallen bank, according to some executives and bankers who spoke to Caixin.

Opinion: What China can learn from SVB’s collapse

IPOs /

First 10 China stocks cleared for main board debuts after IPO overhaul

Ten companies completed registrations with China’s top securities regulator for initial public offerings in Shanghai and Shenzhen, the first batch of enterprises that will sell shares on the main boards under China’s newly revamped IPO regime.

The China Securities Regulatory Commission (CSRC) cleared the listing plans Thursday of the 10 companies, including Citic Metal Group Ltd., Jiangxi Salt Industry Group, Zhongzhong Science & Technology (Tianjin) Co. Ltd. and Shenzhen CECport Technologies Co. Ltd.

Quick hits /

U.S. audit watchdog to start new round of inspections in Hong Kong

Deloitte suspended and fined a record $30.8 million over Huarong

China Everbright’s Hong Kong unit reports almost $1 billion loss for 2022

BUSINESS & TECH

Photo: VCG　

Shipping /

China Cosco unit takes 25% stake in new Egyptian container port

A unit of state-owned China Cosco Shipping Corp. Ltd. will invest in a 25% stake in a new container terminal in Egypt as the shipping giant seeks to expand its presence in emerging markets.

Cosco Shipping Ports Ltd. signed an agreement for the equity investment in Sokhna New Container Terminal, a project at the south entrance of the Suez Canal, the Hong Kong-traded port operator said Thursday. The operating period will be 30 years and the total investment around $375 million, it said.

Electric cars /

XPeng predicts revenue, deliveries to nosedive in the first quarter

XPeng Inc. predicted that revenue and vehicle deliveries will nosedive in the current quarter after the Chinese electric-vehicle upstart reported slowing sales growth and a loss that nearly doubled in 2022.

The company’s revenue is likely to plunge 43.7% to 46.3% year-on-year to between 4 billion yuan ($581 million) and 4.2 billion yuan in the first quarter of 2023, XPeng said Friday in an earnings report.

Quick hit /

Audi CEO seeks to catch up in China in test of Germany’s grit

Long Read /

The Chinese scholars taking on fraud in academic journals

GALLERY

Putin’s surprise visit to Ukraine