Bank_Japanese Nomura to expand in China

Nomura Holdings Inc., Japan's biggst brokerage, plans to set up asset management and investment banking ventures in China, to help it catch up with Morgan Stanley in the world's fastest-growing major economy, reported Bloomberg.

Also reported by Sina(in Chinese).

Tokyo-based Nomura, which isn't allowed to own more than a third of a securities firm under Chinese regulations, plans to set up a company in China responsible for the new businesses by the end of March 2006. The new company will be the first one founded by a Japanese company in China, with the headquarter in either mainland China or Hong Kong.

The plan went after its U.S. competitors Morgan Stanley and Goldman Sachs Group Inc., the second and third-biggest securities firms, expanding in China to win broking and advisory fees from Asia's third-biggest stock market.

"Nomura needs to build its relationships with Chinese officials to overcome obstacles and win business," Yoji Takeda, who helps managing $250million as Head of Asia Equities at RBC Investment Management (Asia) Ltd. in Hong Kong, China daily reported in Jan. 2005.

In January, Nomura announced that it would expand its investment banking services in China and plans to set up a new venture. But it didn't disclose which Chinese companies it will cooperate with.

Morgan Stanley has owned one third of China International Capital Corp., the biggest investment bank, since 1995. Goldman, received regulatory approval Dec. 2 to establish an investment-banking venture in China with Gao Hua Securities, set up by banker Fang Fenglei and Legend Holdings Ltd, reported Bloomberg.

Nomura has recently named Yugo Ishida as its new Chief Executive of its International branch. in April 1.

Politics will not always affect business sometimes.