Since it was opened two month ago, the Keji Branch of Hangzhou Bank, with its knowledge of the risks and rewards faced by many newly-established high tech enterprises, has ventured to provide diversified banking services for clients who have great potential profitability but are yet credit trustworthy. Copying the success mode of the Silicon Valley Bank (SVB), the branch has loaned more than 200 million RMB in the past sixty days.

The loans are a shot in the arm for many local companies. Among the 44 businesses that are credited, 40 are small- and medium-sized enterprises that are engaged in IT, new energy and energy efficiency technologies, getting a total loan of 177 million RMB.

Targeting at these SMEs, a series of faster and more convenient financial products have been developed, such as Government Assured Loans, Order Secured Loans, Option Pledge Loans, Receivable Pledge Loans, IPR Pledge Loans and Credit Pledge Loans.

Hangzhou Bank also introduced the mode of stock holding when loaning money to the companies, which is a common practice among venture capital firms. The bank lends money and the guarantor firms purchase the options. Together, they shoulder the reasonable risks and share the benefits of the companies’ future growth. Hangzhou Silingling Network Technology and SST Technology got respectively two and eight million RMB through this operation. It is introduced that the return rate on these two trading is expected to reach 20 percent.

The two months witnessed the robust growth and venturous exploration of the Keji Branch in the aspect of employing financial tools. It has started working with venture capitals and investment banks. Silicon Paradise Venture and Sinowisdom have set up private equity trust accounts at Keji Branch. The negotiation about the cooperation with Tojoy Asset Management Co., Ltd. and Kunyuan Investment are also under way. The total anticipated investment portfolio may exceed 200 million RMB.