Nomura Holdings Inc. said Monday that it will set up a joint venture in Shanghai's free trade zone to sell investment trusts and other financial products to wealthy people in China.
The major brokerage group signed a contract with three local companies including Shanghai Lujiazui Financial Holdings Co. on Sunday to establish the joint venture by the end of the month.
Nomura will be the first non-Chinese securities firm to operate in the free trade zone, according to company officials.
Capitalized at 30 million yuan (¥487 million), Shanghai Nomura Lujiazui Investment Management Co. will be 60 percent owned by Nomura and become a consolidated subsidiary of the company.
Through the joint venture, Nomura will sell financial products, such as investment trusts and bonds, to wealthy clients of the Shanghai Lujiazui group.
Nomura is already doing business in Hong Kong for wealthy people but has refrained from entering mainland China, due partly to regulations.