TOKYO -- Daiwa Securities Group is setting up a joint venture with a Beijing investment company, taking advantage of relaxed restrictions on foreign ownership put into effect by Chinese authorities this year.
The Japanese group announced Thursday that it signed a memorandum of understanding with Beijing State-owned Capital Operation and Management Center (BSCOMC). Daiwa will control 51% of the venture, which it plans to develop into its "future business hub" in China.
Investment amounts have not been disclosed. The two sides will file for approval from local authorities as early as this year, and target an opening next fall.
Wholly owned by the Beijing city government, BSCOMC focuses on managing stock transactions and the restructuring of state-owned companies. It is the top shareholder in CSC Financial, an existing Daiwa partner.
The newly established business will broker stock and bond transactions and underwrite cross-border deals.
Eased restrictions on foreign ownership of domestic financial institutions have enticed overseas players to set up shop in China. Daiwa rival Nomura Holdings has filed to create a joint venture with Shanghai-based trading company Orient International.