HONG KONG, Oct 20 (Reuters) – Japanese banks Mizuho Financial Group and Daiwa Securities are poised to launch fully independent securities operations in China after clearing crucial regulatory hurdles, according to a Bloomberg report.
The move highlights expansion efforts by Japanese financial companies in China, setting them apart from several Western competitors grappling with prolonged waits for such permits.
Both institutions were recently notified that they had successfully passed final reviews for such operations on the mainland, the report said, citing a source familiar with the matter.
Mizuho and Daiwa did not immediately respond to requests for comment. China’s financial regulators did not immediately respond to a Reuters request for comment.
The move caps long-running efforts by both institutions to build up their onshore presence.
In September last year Mizuho won the securities licence in China needed to secure a green light from regulators for operations in the domestic market. It officially applied to set up its unit in November 2023.
Daiwa, which has been consolidating operational control, agreed this year to buy out local joint venture partners in a $100 million deal to pave the way for a wholly owned structure.
While Japanese institutions secure their green lights, major US banking peers are navigating uncertainty while waiting for Beijing’s final go-ahead.
Citigroup has been waiting for clearance since it applied late in 2021 for a wholly-owned mainland brokerage license, while market maker Citadel Securities, with an application pending since early 2025, also awaits the nod.
(Reporting by Selena Li; Additional reporting by Anton Bridge in Tokyo and Beijing newsroom; Editing by Clarence Fernandez)
