Nomura Holdings Inc. said Friday it has won approval from Chinese regulators to establish a majority-controlled brokerage, as the world's second-largest economy seeks to open up its financial sector to foreign companies.
The move follows UBS Group AG based in Switzerland, which became the first foreign bank to increase its stake to gain majority control of a securities joint venture in China. The bank said in November that it won approval.
Nomura Holdings requested the approval to establish a securities joint venture in China last May. It expects the Shanghai-based Nomura Orient International Securities Co. to start operating possibly by the end of this year.
The company said in a news release it will initially focus on the wealth management business for high-net-worth individuals, later developing its product distribution channels and expanding into wholesale and other business segments.
Its ultimate goal is to grow the business into a "full-fledged brokerage that will form a core part of the firm's strategy in Asia," it said.
Beijing said last year it will raise the limits on foreign ownership in securities joint ventures to 51 percent and allow full control within three years.