The China conundrum for wealth management companies

After Archegos, firms need to reassess risk of doing business in the country

20210429 Nomura Shanghai Financial Distrcit

Nomura Orient set up a branch in Beijing last December with the intention of starting operations in Shenzhen in July. (Source photos by AP and Reuters)

RYUSHIRO KODAIRA, Nikkei senior staff writer

May 5, 2021 14:05 JST

TOKYO -- In the wake of the Archegos debacle, Japanese financial companies should take more care in expanding their wealth management businesses in China.

Nomura Orient International Securities, a Shanghai-based Chinese joint venture between Nomura Holdings and a local partner, set up a branch in Beijing last December, intending to begin operations in Shenzhen in July.