Ties That Bind - Bay Area Council Economic Institute

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Ties That Bind
Wells and HSBC networks to support its customers looking to finance both ends of Asia-U.S.
trade transactions.
As trade and investment with greater China has expanded, so has the accumulation of private
wealth on both sides of the Pacific and, with it, competition for private banking clients. Wells
Fargo vice president for private banking Jane Hennessy says the Wells Fargo and HSBC networks
collaborate in providing cross-border private banking services. These might include
opening accounts; establishing credit through credit cards and auto leases; assisting with portfolio
and real estate investments, and arranging mortgages or college loans.
Silicon Valley Bank
The unique beginnings and evolution of Silicon Valley Bank (SVB), headquartered in Santa Clara
and established in 1983 to serve the particular needs of emerging technology industries, now favor
the bank’s expansion into China.
SVB’s U.S. branch network of 27 offices maps the growth of tech-based communities, the emergence
of advanced Asia-U.S. sourcing networks and supply chains , and the wealth creation that
accompanied the 1999–2000 tech bubble. With the bursting of that bubble, Asia’s gradual recovery
from the 1997 economic crisis and China’s rapidly growing economy, SVB’s focus is increasingly
cross-border.
SVB has been active in Asia on behalf of its U.S. tech industry, venture capital and private equity
clients since 1991 through its Pacific Rim and trade finance groups, providing mainly merchant
banking and business advisory services on both sides of the Pacific. Over 40% of SVB clients do
business internationally and 20% have offices overseas. In 2004 the bank established SVB Global
to build and manage relationships among corporate clients and private equity investors in the
Europe, Israel, India and China markets. An affiliate entity, SVB Business Partners (Shanghai)
Co. Ltd., opened a Shanghai office in 2005 as a wholly foreign owned enterprise (WFOE) offering
consulting and administrative/business services. SVB has an affiliate relationship with Standard
Chartered Bank, accessing headquarters, branch and representative offices offering corporate
banking services throughout greater China.
In addition to offering securities broker-dealer services, SVB manages a $700 million family of
five investment funds through its SVB Capital subsidiary, and offers M&A and private capital
advisory services through its SVB Alliant unit, launched in 2001 with the acquisition of boutique
investment bank Alliant Partners. SVB Alliant has closed more than 400 transactions in its history
and has been a leader in semiconductor M&A deals.
SVP Global senior vice president-Asia Daniel Quon heads SVB Business Partners in China and
has been responsible for SVB’s fund of fund and direct investments in Asia. He stresses that
SVB Business Partners is not currently set up to provide retail or corporate banking services,
even after China’s banking market opens up to allow foreign-owned banks to take deposits
and offer services in local currency. Instead it offers liaison trade, foreign exchange and other
banking services through SVB in the U.S. and Standard Chartered in China, and consulting,