Growing losses onshore coupled with a market environment that has «changed dramatically» has led Nomura to rethink its China business, according to senior executive Kenji Teshima.
Nomura’s Shanghai-based joint venture – Nomura Orient International Securities – is rethinking its strategy, according to a «Bloomberg» interview with China committee head Kenji Teshima.
«It is great timing to review, reassess the business [and adjust priorities],» Teshima said, highlighting that the Covid restrictions had «severely limited the ability to grow the business» while the market environment has since «changed dramatically».
In 2022, Nomura Orient International Securities saw losses double year-on-year to 225 million yuan ($31 million), according to filings. The venture is jointly owned by state-backed partners Oriental International (Holding) and Shanghai Huangpu Investment Holding (Group), which hold a combined 49 percent stake.
Headcount, License Target
In addition to resizing its existing business, Nomura may also look to enter new businesses as it awaits its pending application for an investment banking license. Options that could be explored include asset management, financial advisory and cross-border institutional investments, added the report citing unnamed sources.
«They want to see a profitable situation as soon as possible. So do we,» Teshima said, referring to the joint venture’s Chinese partners. «They supported the initial plan because that was the right thing to do at that time. Now they also appreciate the environment is changing.»
