Silicon Valley bank collapse storm, the legal person is advised to pay attention to the shocks of technology stocks and financial stocks (Reuters file photo)

[Reporter Wu Xintian/Taipei Report] Silicon Valley Bank of the United States announced its bankruptcy. HSBC Investment Trust pointed out that for the subsequent impact on the market, it is necessary to pay attention to related industries such as technology stocks and financial stocks. It is also expected that short-term shocks to the market will be inevitable.

Wei Yinru, chief investment officer of HSBC Investment Trust, pointed out that Silicon Valley Bank was established in 1983. It was established mainly to provide technological innovation capital needs. So far, it has provided financial services to half of the US venture capital industry and the technology industries it invests in. At present, Silicon Valley Bank mainly The customers are mainly in the technology industry and the cryptocurrency industry.

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Starting in 2022, the US Federal Reserve will accelerate the pace of interest rate hikes, which will slow down the growth of technology, and the price of cryptocurrencies will plummet, making the operation of Silicon Valley Bank more difficult.

Wei Yinru further explained that due to the mismatch between the duration of assets and liabilities of Silicon Valley Bank, the Federal Reserve has raised interest rates sharply in the past year, and the interest rate has risen rapidly. The assets of Silicon Valley Bank are facing market price impairment. The company, faced with depositors withdrawing their deposits for operational needs, made Silicon Valley Bank sell off assets that were at a loss on the books, and eventually made Silicon Valley Bank unable to make ends meet, and then went bankrupt.

Wei Yinru reminded that in terms of subsequent impact on the market, investors need to pay attention to related industries such as technology stocks and financial stocks. Short-term shocks to the market are inevitable. If you can avoid these two industries that are mainly related to the collapse of Silicon Valley Bank , the shock and volatility of the investment portfolio will be significantly reduced.

U.S. Treasury Secretary Yellen said that since the 2008 financial tsunami, the financial industry has been strictly regulated, and the failure of Silicon Valley banks should not cause systemic risks.

Yellen has invited various regulators to discuss the issues of Silicon Valley Bank, including the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC). Yellen has sufficient confidence in banking supervision and believes that the US banking system Still resilient, regulators will be effective in addressing the problems SVB created.

The Federal Reserve and the Federal Deposit Insurance Corporation issued a joint statement at 6 am Taiwan time on the 13th, stating that depositors of Silicon Valley Bank will be able to withdraw funds and provide banks with more liquidity to prevent the expansion of the run on the bank. Effectively appease the market sentiment and prevent the bankruptcy of Silicon Valley Bank from spreading.

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