Japan’s Nomura reassesses mainland China business strategy as losses mount
- Losses at Nomura’s Shanghai-based securities joint venture rose to 225 million yuan (US$30.75 million) last year, from 84 million yuan in 2021
- Nomura’s headcount in China has dropped to 259 from 281 in July, far short of the original target of increasing it to 500 this year
Nomura Holdings said on Thursday it is reassessing its mainland China business, as losses mount at its Shanghai-based securities joint venture in another blow to the top Japanese investment bank’s global expansion strategy.
Nomura’s majority-owned joint venture has struggled to grow since its launch in 2019, dragged down by the pandemic and a slowing economy.
In 2022, the joint venture lost 225 million yuan (US$30.75 million), after losing 84 million yuan in 2021, according to Nomura’s filings.
“With a presence in China for over four decades since 1982, we have consistently sought to contribute to the development of the country’s capital markets and service the evolving needs of clients,” Nomura said in a statement.
“That strategy remains unchanged. Having now fully emerged from the pandemic, we are working constructively with our joint venture partners to determine the most viable path for our onshore business to achieve this long-term objective,” it said.
Nomura’s China joint venture headcount has dropped to 259 from 281 in July, far short of the original target of increasing it to 500 this year.