The Japanese firm said it will initially focus on the wealth sector.

Japanese financial giant Nomura has won regulatory clearance to set up a securities joint venture in China, focusing initially on the wealth management sector. 

The new company will start out by serving high net worth individuals in China, the firm said. Nomura said it intends to later distribute products into wholesale and other channels, ultimately leading to a “full-fledged” brokerage. 

“This is an important step in building up our China business. With an increased presence in China, we aim to support economic growth in both China and Japan, and firmly establish ourselves as a global financial services group with deep roots in Asia,” Nomura chief executive, Koji Nagai, said.

The firm said it has not yet worked out what effect the JV will have on its consolidated financial results.