What’s new: The China Securities Regulatory Commission (CSRC) has accepted for processing an application by Japan-based Mizuho Securities Co. Ltd. to set up a wholly owned securities firm on the Chinese mainland, the company announced on Monday.
The new firm will provide services including raising and managing funds, with a focus on bonds, for issuers and investors both inside and outside China, the company said in a press release.
Information released by the CSRC shows that Mizuho’s application was first submitted in November and was accepted on Wednesday for processing.
The background: Once approved, Mizuho Securities will join a growing list of global financial institutions with wholly owned securities businesses in China.
In 2020, the Chinese government scrapped foreign companies’ ownership restrictions on securities, futures, mutual fund and life insurance firms, as part of efforts to further open up the country’s financial markets. Since then, regulators have given the green light to JPMorgan Chase & Co. and Goldman Sachs Group Inc. to take full control of their Chinese securities joint ventures.
Mizuho Securities is part of Mizuho Financial Group Inc., one of Japan’s largest financial institutions, which operates businesses spanning banking, securities, trust, asset management, and research and consulting.
Contact reporter Zhang Yukun (yukunzhang@caixin.com) and editor Nerys Avery (nerysavery@caixin.com)
