Daiwa Securities to open China unit with two Beijing partners in 2020
TOKYO, NNA - Japan’s Daiwa Securities Group Inc. plans to open a joint venture with two Chinese partners in Beijing in 2020 mainly to provide financial solution services in China where regulations on foreign investment in the financial sector have been relaxed.
Daiwa applied to the China Securities Regulatory Commission on Tuesday for the establishment of the joint securities firm, Daiwa said in a statement. A Daiwa spokesman said the new firm will aim to start business within 2020.
Daiwa and the Beijing State-owned Capital Operation and Management Center (BSCOMC) signed a memorandum of understanding in November last year to form the joint venture, 51-percent owned by the major Japanese brokerage. BSCOMC is an asset management company affiliated to the city administration of Beijing.
The remaining 49 percent of shares will be controlled by BSCOMC and a new partner, Beijing Xicheng Capital Holdings Co., which is an affiliate of state-owned capital operation company Beijing Financial Street Capital Operation Center, the statement said.
The joint firm will build cross-border business mainly by providing advisory services on mergers and alliances involving Japanese, Chinese and other companies, the spokesman said.
In May last year, the Chinese government decided to raise the upper limit of foreign ownership of securities and life insurance companies to 51 percent. The ownership cap on other financial industries including banking was also to be eased. Daiwa’s decision to form the joint venture has been made in line with the deregulation move.