Nomura Holdings Inc is set to close one of its four branches in China as the Japanese financial services group continues to scale back its wealth management operations on the mainland. The decision marks a significant retreat from a key growth initiative launched in recent years.
According to individuals familiar with the matter, the company’s brokerage subsidiary, Nomura Orient International Securities, plans to shutter its branch in Zhejiang province by the end of 2025. The individuals requested anonymity due to the private nature of the discussions. A spokesperson for the Tokyo-based firm declined to comment on the development.
The Zhejiang branch was established in late 2021 as part of Nomura’s broader push to expand in affluent Chinese regions. At the time, the firm viewed wealth management as a strategic priority for its growth ambitions in China. However, that plan has been challenged by a confluence of factors including China’s slowing economy, intensifying competition, and regulatory pressures linked to President Xi Jinping’s “common prosperity” initiative.
Since its inception in 2019, Nomura Orient International Securities has consistently posted losses. In the year ending 31 December, the joint venture reported a net loss of 128.7 million yuan (approximately USD 18 million), representing a 30 percent improvement from the previous year and marking the second consecutive year of reduced losses.
In April, it was reported that Nomura is realigning its focus in China, shifting emphasis away from wealth management in favour of expanding its brokerage and asset management capabilities.
This strategic pivot reflects a broader recalibration by global banks in China’s USD 69 trillion financial services sector. Initial enthusiasm following China’s market liberalisation five years ago has been tempered by geopolitical tensions and economic headwinds. Major firms including JPMorgan Chase and UBS have since moderated their expansion plans.
Zhejiang, located on China’s eastern coast, is considered one of the country’s most affluent provinces. It hosts major commercial centres such as Yiwu, a global manufacturing and export hub, and is the home of tech conglomerate Alibaba. In addition to Zhejiang, Nomura’s majority-owned joint venture with Oriental International and Shanghai Huangpu Investment Holding currently operates branches in Shanghai, Beijing and Shenzhen.
-Bloomberg
