CSRC Approves Nomura and JPMorgan Joint Brokerage Venture

Nomura and JPMorgan have managed to secure regulatory approval from the China Securities Regulatory Commission (CSRC) to set up joint brokerage ventures in the country, the regulator said this Friday.

At a news conference in Beijing, the securities watchdog announced the news, as well as stating that it would implement a national policy that would further open up the Chinese financial market to foreign firms.

According to a report from Reuters, no details on the joint venture are currently known, and neither Nomura or JPMorgan had an immediate comment on the decision.

In April of 2018, the Chinese regulator issued rules to raise the ceiling on foreign ownership of China-based securities firms to 51 percent. Previously, the limit was 49 percent.

Towards the end of last year in November, the CSRC gave the first approval for a foreign firm to take advantage of this, which was granted to Swiss firm UBS Group AG which raised its shareholding in UBS Securities Co. Ltd. to 51 percent.

Nomura Plans Joint Venture with Orient International in China

Today’s announcement follows on from an earlier report from Caixin Global, the English news outlet of Beijing-based media group, this month, which revealed that Nomura is planning another joint venture in China.

Citing sources familiar with the matter who asked to remain anonymous, the news outlet said that Nomura would be setting up a securities joint venture in Shanghai, which would be the first newly established foreign-controlled brokerage in mainland China.

The joint venture will be based in Shanghai, and Nomura will hold a 51 percent stake, while Orient International (Holding) Co. Ltd., a state-owned enterprise based in Shanghai, will hold the remainder.

Leading this joint venture will be Yu Qing and Sun Dongqing who will be named the chair and general manager of the venture, respectively, according to the sources. It is not clear if this venture is in any way associated with the one revealed today.

As Finance Magnates previously reported, Nomura has stated that it is interested in exploring opportunities to expand its business in the Chinese market.