Quick Take: Nomura Seeks to Set Up Securities Joint Venture in China

Nomura Holdings Inc., Japan’s biggest brokerage and investment bank, applied to China’s securities regulator to set up a join-venture brokerage in China.

“We are currently discussing the details with relevant parties,” Nomura said in a reply to Caixin, without providing further comment.

The China Securities Regulatory Commission said Tuesday it has received Nomura’s application. Nomura is seeking to hold a 51% stake in the brokerage, said the commission.

Nomura is the second foreign financial company to apply for a controlling stake in a securities business in China, following the country’s revised rules allowing foreigners to own majority stakes in domestic securities firms. Switzerland’s UBS Group AG said last week it was seeking a majority stake in its securities joint venture in China, becoming the first overseas company to launch the official process to do so.

The rule revision, effective in late April, raised the ceiling on foreign ownership of Chinese securities companies from 49% to 51%. It is one of a series of measures promised by Chinese authorities to be launched this year as part of the country’s commitment to open up the financial sector to foreign ownership and competition.