Japanese brokerage Daiwa Securities Group is reportedly planning to expand Chinese business with the aim of capitalising on evolving asset-management space.
The company is set to launch its majority-owned Beijing-based joint venture, Daiwa Securities (China), later this month, Bloomberg reported.
Daiwa holds a 51% interest in the venture, while the remaining stake is held by Beijing State Capital Operation Management Center and Beijing Xi Cheng Capital.
Daiwa Securities Group CEO Seiji Nakata told the news agency in an interview that the venture will initially offer investment banking, as well as stock broking and fixed-income trading.
According to Nakata, the unit has hired over 35 investment bankers to advise on cross-border mergers and acquisitions and to seek deals to underwrite local stock offerings.
He added the brokerage is eyeing establish a ‘foothold in areas such as Shanghai and applying for different licenses’ including asset management.
“China is such a huge market that there’s a lot of potential,” Nakata noted.
He also divulged that Daiwa is looking to bring its Chinese venture to profit ‘in a few years’ without detailing further.
Earlier this month, reports said that US asset manager BlackRock secured licence in China for a majority-owned wealth management venture with a China Construction Bank (CCB) unit and Singapore state investor Temasek.
Last month, BNP Paribas submitted an application with the Chinese securities regulator to set up a securities company in the country as it opens up its capital markets.
Financial giants including Citigroup and Schroders are also among the companies vying to benefit from the opening of China’s capital markets.
China officially nixed its limits on foreign ownership of securities companies in April last year, allowing foreign players to increase their holdings in the Chinese ventures towards full control.