HONG KONG (Reuters) - Japanese brokerage Nomura Holdings (8604.T) has received final regulatory approval to launch its majority-owned joint venture in China that will operate asset management, brokerage, investment consulting, and proprietary trading businesses.
Nomura received the regulatory nod to set up the venture Nomura Orient International Securities in March this year, as part of Beijing’s move to open its financial sector up to foreign firms.
With the latest approval, the Shanghai-based Nomura joint venture will be able to launch its operations.
“Through the new business, Nomura aims to leverage its global expertise to provide clients with diverse investment products and services for the Chinese market,” the Japanese brokerage said in a statement on Friday.
Nomura Orient International Securities is 51% owned by Nomura, 24.9% by Orient International Holding, and 24.1% by Shanghai Huangpu Investment Holding Group.
China has unveiled a slew of measures in the last couple of years to open up its trillions of dollars worth of financial sector to give foreign firms greater access in areas including banks, fund management, brokerages and insurance businesses.
The measures come as a crippling trade war with the United States exacerbates a slowdown in growth for the world’s second-largest economy.
Goldman Sachs (GS.N) in August said it had applied for majority control of its Chinese joint venture, the latest international bank to do so ahead of Chinese plans to eventually allow foreigners full control.
Both JPMorgan (JPM.N) and Nomura got approval to work on starting majority-owned joint ventures from scratch in March.
Management control would allow foreign banks to offer more services through their JVs and potentially leverage their global networks to win China market share, bankers have said.
Reporting by Noah Sin and Sumeet Chatterjee; Editing by Shailesh Kuber & Kim Coghill