Nomura forms joint venture in Shanghai free-trade zone

Japanese investment bank Nomura yesterday signed an agreement with three mainland firms to establish a joint venture in Shanghai's free-trade zone after the authorities approved at least 12 foreign financial institutions to operate in the high-profile testing ground for economic reform.

Under the multilateral agreement, Japan's largest securities firm will own 60 per cent of the venture, while property developer Shanghai Lujiazui Financial, controlled by state-owned Shanghai Lujiazui Development Group, will hold 20 per cent.

Lujiazui International Trust and Shanghai Jiu You Equity Investment Management will each take 10 per cent of the joint firm.

The venture would have capital 30 million yuan (HK$37.2 million), Nomura said.

It said it planned to provide information on financial markets and products to financial institutions in the Shanghai free-trade zone and explore business opportunities that arose as personal financial assets increased on the mainland.

Meanwhile, Shanghai Lujiazui Development plans to build a complex of office buildings, entertainment facilities, exhibition halls and shopping centres covering up to 500,000 sq metres in Lingang, an untapped area which could eventually be included as part of the trade zone.