Nomura Holdings Inc. has decided to make a full-scale entry into the Chinese financial market, The Yomiuri Shimbun has learned.
The major securities company is set to file an application with Chinese authorities for the establishment of a joint venture with Chinese companies by the end of this month at the earliest. It plans to provide asset management and other services to wealthy people in China's major metropolitan areas such as Beijing and Shanghai. Nomura Holdings is expected to be the first Japanese brokerage firm to launch extensive operations in the Chinese market.
Although Chinese government regulations prevent foreign companies from fully entering the domestic financial market, the government is changing its policy to gradually open up the market. Currently, foreign investment in a brokerage or life insurance firm cannot exceed 50 percent, but this is scheduled to rise to 51 percent by the end of June. Regulations on capital investment are expected to be abolished in three years.
Nomura Holdings is considering taking a 51 percent stake in the joint venture. The firm believes it will have an edge because it can provide global financial products, such as stocks, investment trusts and bonds, by taking advantage of its own network.
The company is also planning to provide comprehensive services, including investment banking for corporate clients, via its expanded business in China.
Nomura Holdings opened a representative office in Beijing in 1982. However, the company's operations thus far have been limited due to foreign investment restrictions. It has only conducted business such as real estate investments and the provision of financial information.
Personal financial assets in China are believed to be worth more than 1.4 quadrillion yen -- almost on par with Japan's 1.88 quadrillion yen.
By fully entering into the Chinese market, Nomura Holdings hopes to develop its operations and generate new sources of revenue.
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