Caixin
Jul 31, 2019 04:24 AM
FINANCE

Nomura’s First JV Brokerage in China Set to Open by Year End

Nomura Orient is one of the first two new foreign majority-controlled joint venture brokerages approved in March. Photo: VCG
Nomura Orient is one of the first two new foreign majority-controlled joint venture brokerages approved in March. Photo: VCG

Japanese investment bank Nomura Holdings Inc.’s first securities joint venture in China has its top management team in place and expects to open for business by the end of this year.

The Shanghai bureau of China’s securities regulator approved the qualification of seven Chinese and Japanese executives for Nomura Orient International Securities, a joint venture between Nomura and Shanghai-based Orient International Co. Ltd.

The seven executives include two vice chairmen, four directors and one supervisory board member. The company has also selected its board chair and supervisory board chair, subject to regulatory approval, Caixin learned.

Nomura Orient is one of the first two new foreign majority-controlled joint venture brokerages approved in March after the China Securities Regulatory Commission (CSRC) raised the ceiling on foreign ownership of Chinese securities businesses to 51% from the previous 49% as part of China’s efforts to open up its financial markets. The other such venture, JPMorgan Chase Securities (China) Co. Ltd., is led by JPMorgan with partners including Shanghai Waigaoqiao Free Trade Zone Group and four other Chinese investment firms.

Caixin learned from sources that Yu Qing will be named chairwoman of the venture. Yu, 55, was previously a vice president of China Reinsurance (Group) Corp., the country’s only state-owned reinsurance group. She previously worked for the Ministry of Finance for 20 years dating back to 1989.

Ji Shengjun, vice president of Orient International, will be named chair of the venture’s supervisory board. Both appointments are pending regulatory approval.

Orient International’s financial chief Wang Guoming and Nomura Holdings’ senior managing director Shinichi Mizuno are to be named vice chairmen. Mizuno is also deputy head of the China committee of Nomura.

The four directors approved are Yu, Orient International’s risk control chief Jiang Yuankai, Shanghai Huangpu Investment Chairwoman Zang Huiling and Toru Otsuka, Nomura Holdings’ senior managing director and chief strategy officer.

Nomura Orient expects to prepare for opening by the end of the year, the company’s proposed general manager Sun Dongqing said Saturday at a public event. The CSRC requires that such joint ventures should complete business registration within six months upon approval.

Shanghai-based Nomura Orient has registered capital of 2 billion yuan ($300 million). Nomura Holdings invested 1.02 billion yuan and took a 51% stake. Orient International and Shanghai Huangpu Investment Co. Ltd., both backed by the city government, hold 24.9% and 24.1% of the joint venture.

Nomura Orient has obtained four business licenses to conduct brokerage, investment consulting, proprietary trading business and asset management.

The company said in March that it will initially focus on the wealth management business for high-net-worth individuals in China. It then plans to develop its product distribution channels and expand into wholesale and other business segments, according to a press release published on Nomura’s website.

Contact editor Han Wei (weihan@caixin.com)

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