Interview: Nomura envisages opportunities from China's drive to further open up financial sector

HONG KONG, June 13 (Xinhua) -- China's drive to further reform and open up its financial industry means huge opportunities for foreign financial institutions, a high-ranking executive of Japan-based Nomura Holdings Inc. has told Xinhua.

"China has become the second largest economy in the world, and its capital market is also the second largest globally," said Toshiyasu Iiyama, executive managing director of Nomura Holdings Inc. and chairman of the China committee, in a written interview with Xinhua recently.

"China's building of a multi-layer capital market system as well as the further reform and opening-up of the financial industry are providing more and more opportunities to foreign financial institutions to achieve more development and growth in China," said Iiyama.

He said that many foreign institutions, including Nomura, have benefited from the continuous opening-up and development of China's financial market.

Nomura Holdings Inc., a company mainly engaged in securities, investment and other financial businesses worldwide, entered the China market 40 years ago.

In 2019, Nomura launched its joint venture, Nomura Orient International Securities, one of China's first newly approved foreign-controlled securities companies, which was viewed by the global financial service provider as a major breakthrough.

Nomura said that its business in the China market has been encouraging, with the joint venture headquartered in Shanghai city and three new branches in Beijing, Shenzhen and Hangzhou.

For the time being, Nomura Orient International Securities has opened more than 1,600 customer accounts, overseeing around 5.60 billion yuan (832.1 million U.S. dollars) of client assets.

"This year is the 40th anniversary of Nomura's presence in China. Nomura opened its Beijing representative office back in 1982, as one of the first foreign securities companies entering the Chinese market. Over the past 40 years, we have been honored to witness the development and opening-up of China's financial market," Iiyama said.

"The establishment of a joint venture securities firm in China is a great opportunity not only for the joint venture itself, but also for the entire Nomura Group. We highly appreciate the opportunity provided by China's further opening-up," he said.

Naming multiple factors as driving forces for the growth of the Chinese financial sector, Iiyama said that China's booming economy in the past decades, especially after China adopted the reform and opening-up policy more than 40 years ago, has built a solid foundation for the development of China's financial industry.

In recent years, the transformation and upgrading of China's economic structure has also supported the high-level opening-up of the financial industry, he noted.

Iiyama said the successful reform of China's financial system, such as a multi-layer capital market system and the regulatory system, has also provided a strong guarantee for the further development of the financial sector.

"I think the active participation and support from various market players have also contributed to the prosperity and vitality of China's financial industry," he said.

As for the China market strategy in the years ahead, Iiyama said, "We expect the wealth management business to grow rapidly in China, although this is only the beginning of Nomura's strategy in China."

"We are taking steps to expand our onshore business here. Nomura Orient International Securities is in preparation to apply for an investment banking license, aiming to become a fully licensed brokerage and provide more diversified and comprehensive services to high-net-worth clients," he said.

"Connecting Nomura's global network to the Chinese market is our next important agenda, and we have been already working on it. Through Nomura's global network, the group can connect with the markets of Tokyo, New York, London, Hong Kong and Singapore, and we are working hard to provide new products and services to our clients," he said.

Nomura hopes to continue providing long-time strong support to China's financial market and clients with its global network and financial expertise, he added.