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Daiwa, Mizuho clear final hurdles to launch China securities units

Daiwa, Mizuho clear final hurdles to launch China securities units

Money Moves

Japanese groups pass the last review for wholly-owned mainland China securities units, ahead of US rivals still waiting

Today: Bloomberg reports approvals

Overview

Updated 2 hours ago

Two Japanese financial groups passed the final regulatory review to run wholly-owned securities businesses in mainland China. Bloomberg reported the approvals on October 20, citing a person familiar with the matter.

Mizuho and Daiwa now hold what Citigroup has sought since late 2021 and Citadel Securities since early 2025. The approvals follow a March meeting in which Chinese Vice Premier He Lifeng courted Japanese trade and investment.

Why it matters

Japanese brokerages win direct access to China's securities market while US rivals keep waiting, shifting which foreign firms gain a foothold.

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Key Indicators

2
Japanese groups cleared for China securities launch
Mizuho and Daiwa passed the final regulatory review in October 2026.
$103M
Daiwa's buyout of Chinese JV partners
706 million yuan paid for the 49% stakes held by two Beijing state firms.
5 yrs
Citigroup's wait for a China brokerage licence
Applied late 2021 for a wholly-owned mainland brokerage licence; still pending as of October 2026.
2.3B yuan
Registered capital of Mizuho Securities (China)
Beijing-based unit, fully owned by Mizuho Securities.

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People Involved

Organizations Involved

Timeline

June 2021 October 2026

8 events Latest: Today
Tap a bar to jump to that date
  1. Bloomberg reports approvals

    Today Report

    Bloomberg reports Daiwa and Mizuho cleared the last hurdle to launch China securities units.

  2. Final approvals granted

    Regulatory

    Chinese regulators approve Daiwa's ownership change and give both firms final clearance.

  3. Daiwa buys out JV partners

    Acquisition

    Daiwa agrees to buy out Chinese joint venture partners for 706 million yuan, about $103 million.

  4. He Lifeng hosts Japanese delegation

    Diplomacy

    Vice Premier He Lifeng meets a Japanese trade delegation to discuss investment and trade.

  5. CSRC approves Mizuho unit

    Regulatory

    CSRC approves Mizuho Securities (China), registered capital of 2.3 billion yuan, based in Beijing.

  6. Mizuho files China application

    Application

    Mizuho formally applies to set up a mainland China securities unit.

  7. Daiwa China venture licensed

    Regulatory

    Daiwa's 51%-owned securities joint venture in China receives a business licence.

Scenarios

1

Daiwa and Mizuho launch mainland operations by mid-2027

Likely Resolves by Q2 2027

Discussed by: Reuters; Bloomberg

Mizuho's spokesperson said the firm continues preparations for launch. Daiwa completes its wholly-owned conversion. Both begin trading under formal operating licences, giving Japanese brokerages their first fully independent mainland platforms.

2

Citigroup and Citadel Securities still waiting at end-2027

Likely Resolves by End of 2027

Discussed by: Bloomberg report

Beijing continues to prioritise Japanese applicants. Citigroup's late-2021 application and Citadel Securities' early-2025 application remain undecided through 2027, keeping the two US firms out of the wholly-owned brokerage market.

3

Another foreign firm wins a China securities licence by end-2027

Possible Resolves by End of 2027

Discussed by: Lianhe Zaobao reporting on He Lifeng's outreach; foreign-access trend analysis

If the approvals reflect broader easing rather than Japan-specific diplomacy, other foreign applicants win licences within the next year. The March meeting with Japanese business and Beijing's stated welcome to foreign investment suggest continued opening.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2020-2021

Wall Street banks take full control of China ventures (2020-2021)

Beijing lifted the cap that limited foreign investors to minority stakes in Chinese securities firms in 2020. Goldman Sachs, Morgan Stanley, and JPMorgan moved quickly, buying out Chinese partners to run wholly-owned mainland securities businesses.

Then

Three US banks became the first wholly foreign-owned securities firms in mainland China.

Now

The buyout structure became the template for later foreign entrants, including Daiwa and Mizuho.

Why this matters now

Reuters noted Daiwa's April 2026 buyout followed 'similar moves' by these three banks. The new Japanese approvals extend the wholly-owned model to firms that joined later.

2001-2006

China opens finance after WTO accession (2001-2006)

After China joined the World Trade Organization in 2001, its regulators gradually allowed foreign securities firms into the mainland market, limited to minority stakes in joint ventures with domestic partners.

Then

Foreign brokerages entered China through local joint ventures, typically holding a third to half of the equity.

Now

The joint venture model defined foreign participation until Beijing removed ownership caps in 2020.

Why this matters now

Daiwa's 51%-owned joint venture, licensed in 2021, was a product of this earlier opening — and the structure it has now bought out entirely.

Sources

(7)