BEIJING (Reuters) - Japan's Daiwa Securities Group Inc (T:8601) has received regulatory approval to launch a majority-owned joint venture in China that will provide brokerage and securities underwriting services in the world's second-largest economy.
China's top securities watchdog approved Daiwa to set up the venture that is 51% owned by the Japanese brokerage and investment bank, according to a statement on China Securities Regulatory Commission (CSRC).
Beijing State-Owned Capital, an investment vehicle of Beijing municipal government, owns 33% in the joint venture while an investment arm of Beijing's Xicheng District holds 16%, the statement showed.
Daiwa planned to make a comeback in China as the country opens its financial sector to allow foreign institutions to own majority stakes in securities firms, mutual funds and insurance companies.
It submitted the application for the establishment of the joint venture to CSRC last September.
Daiwa retreated from China in 2014 where it owned 33% of a joint venture with a local partner, having failed to control significant market share.
Last year, Nomura Holdings (T:8604) also received approval to launch its 51%-owned joint venture in China for asset management, brokerage, investment consulting and proprietary trading businesses.