China's financial market regulator recently allowed foreign companies to take majority stakes in joint ventures. Japanese bank Nomura is the latest to join the ensuing push into the world's most populous country.
Nomura is seeking to gain a 51 percent stake in a new China-based brokerage business, according to a report by «Reuters». The China Securities Regulatory Commission said it had received an application from Japan's largest investment bank.
Nomura currently serves wealthy Chinese clients from retail operations in Hong Kong and offers wholesale services in mainland China. On Tuesday finews.asia reported that the Japanese firm, in recognition of its growing Chinese interests, had named a new chief economist, Ting Lu, who will lead a team of economists charged with forecasts for China's economic development.
More to Follow?
The China move by Nomura follows that of Swiss banking giant UBS. The Zurich-based bank has applied to take a 51 percent stake in its Chinese joint venture, UBS Securities. The firm currently holds one-quarter of the entity, which unites the four Chinese firms Beijing Guoxiang Asset Management, China Guodian Capital, Cofco Group and a Guangdong transport firm.
Credit Suisse also intimated it would like to increase its stake in its Chinese joint venture. The Swiss lender owns a third of Credit Suisse Founder Securities, the Beijing-based joint venture established by Founder Securities and Credit Suisse in 2008.
