Nomura to set up JV in Shanghai Free Trade Zone

22 May 2014   Category: News, Asia, China, Japan   By Derek Au

Japanese investment bank Nomura Holdings will set up a joint venture (JV) in the Shanghai Free Trade Zone, from which it will market advice and investment products to institutions within the pilot area.

Nomura said that it had signed an agreement with three companies based in the city, under which it will provide information on financial markets and products to institutions, as well as act as a gatekeeper for offshore products. The JV, however, does not permit Nomura to sell financial products directly to Chinese clients.

The JV will be launched with 30 million RMB (US$4.81 million) in capital. Nomura will own a 60% stake while Shanghai Lujiazui Financial Holdings Co Ltd, a holding company of state-owned developer Shanghai Lujiazui Development (Group) Company Limited, will hold a 20% share. The remaining 20% stake will be equally divided between Lujiazui International Trust and Shanghai Jiu You Equity Investment Fund Management LLP.

A number of foreign financial institutions such as HSBC, Citigroup, DBS, Deutsche and ANZ have already tapped into the free trade zone, which opened in September last year.