13 Mar 2023
While the collapse in SVB will unlikely trigger another financial crisis, it could have a negative psychological impact on China markets. Many Chinese tech start-ups, especially those with dollar funding, have opened U.S. accounts at SVB. At least one WeChat group with several hundred members has been formed by anxious Chinese clients of SVB seeking to safeguard their interest. Lower risk appetite could mute any excitement from an expansion of the China-Hong Kong Stock Connect today. More than 1,000 China-listed A-shares, and nearly 200 Hong Kong-traded stocks will be added to the cross-border investment scheme.
CROSBY Research – Crosby Bi-noculars (Bi-weekly Issue 31)