Mizuho Financial Group, one of Japan’s leading banking institutions, has submitted an application to the China Securities Regulatory Commission (CSRC) to establish a wholly-owned securities company in China. The move positions Mizuho among the latest foreign entities aiming to penetrate China’s onshore securities market independently.
The CSRC disclosed the application receipt on Wednesday, marking a significant step for Mizuho to capitalize on China’s lucrative capital markets fee pool, recognized as the world’s third-largest after the United States and Europe.
Mizuho’s securities arm eyes the establishment as a strategic move to tap into the vast potential of China’s financial landscape. The spokesperson for Mizuho emphasized the necessity of having a securities firm in China, highlighting the four-decade-long presence since the launch of its banking office and the operation of over 30,000 Japanese companies in the country.
Other global financial institutions, including Citigroup and Standard Chartered, have also embarked on establishing wholly-owned securities units in China, following Beijing’s decision in 2019 to allow foreign firms to have full ownership of securities companies.
Notably, Mizuho’s larger Japanese competitor, Sumitomo Mitsui Financial Group, had applied for a securities unit launch in 2021. However, the application was later withdrawn due to a market manipulation scandal at its brokerage unit, resulting in the indictment of former executives in the preceding year. Mizuho, in contrast, aims to navigate the regulatory landscape successfully and capitalize on the growing opportunities in China’s dynamic financial markets.
