Japan’s Mizuho applies to set up a securities company in China. Japan’s Mizuho Financial Group (8411.T) is the most recent international corporation to make headway into China’s onshore securities market with a fully-owned entity. They have attempted to form a securities company in China, which would make them the latest to do so.
The third-largest Japanese banking group’s securities division has applied, according to a filing record, the regulator made public on its website on Wednesday.
Mizuho has decided to submit this application because it wants to participate in China’s lucrative capital markets fee pool, which is the third largest in the world after the United States and Europe.
“Mizuho believes that it’s necessary to have our securities firm in China to achieve further growth in the key market, where we launched our banking office four decades ago and more than 30,000 Japanese companies are operating,” a spokeswoman stated.
Following Beijing’s decision in 2019 to allow wholly-owned foreign securities businesses to operate in the country, Citigroup (C.N.) and Standard Chartered (STAN.L.) are both in the process of creating securities divisions in China.
Sumitomo Mitsui Financial Group (8316.T), a major Japanese competitor to Mizuho, applied to open a securities business in 2021. However, the company eventually withdrew the proposal owing to a market manipulation controversy that occurred at its brokerage unit and resulted in the indictment of former executives in the previous year.
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