Full Breakdown
Japanese Brokers Win Wholly Owned Securities Licenses in China, U.S. Rivals Still Await Approval
By Drooid · · How we work
Core Event
Daiwa Securities Group Inc. and Mizuho Financial Group Inc. have been notified that the final regulatory hurdle to operate wholly owned securities businesses on the Chinese mainland has been cleared, a person familiar with the matter said. Both firms will move forward with preparations, while a Daiwa spokesperson declined to comment.
Diplomatic Context
The approvals follow a senior trade delegation from Japan hosted by Vice Premier He Lifeng in March, aimed at expanding bilateral trade and cross-border investment. Vice Premier He later said Japanese companies are welcome to conduct business in China and share market opportunities. The decisions arrive despite heightened diplomatic tension after Prime Minister Sanae Takaichi’s remarks on Taiwan nearly a year earlier.
Details of the Approvals
China’s securities regulator had granted a business license to Daiwa’s 51 %-owned joint venture in June 2021 and approved Daiwa’s purchase of its local partners for roughly $100 million in April 2024, allowing full ownership. Mizuho received its approval in October 2025 and, after an on-site inspection and operational review, was granted a permit last week. Both firms join JPMorgan Chase & Co. and Goldman Sachs Group Inc. as the only foreign institutions with wholly owned onshore brokerage licenses.
Impact on U.S. Competitors
U.S. firms remain on a long-standing approval waitlist. Citadel Securities submitted a wholly foreign-owned onshore securities license application in January 2025 after a failed attempt to acquire Credit Suisse’s venture in 2024. Citigroup’s application, filed in late 2021, has been delayed by shifting Chinese data-security rules and U.S. regulatory scrutiny, and CEO Jane Fraser’s recent cost-cutting focus has reduced the bank’s incentive to pursue a greenfield brokerage.
Next Steps
Mizuho’s securities unit confirmed it will continue preparations for launch, and Daiwa is expected to begin operations as a fully owned entity once internal readiness is complete. The Chinese regulator’s recent approvals suggest a possible opening for additional foreign firms, but no timeline has been provided for pending U.S. applications.