Daiwa, Mizuho Win Fully-Owned Securities Licenses in China; U.S. Peers Still Awaiting Approval
nashnova research
Daiwa Securities and Mizuho Financial received final approval last week to operate wholly owned brokerages in mainland China, joining JPMorgan and Goldman Sachs; applications from Citi and Citadel Securities remain unresolved, highlighting a widening gap in how Beijing treats foreign entrants by origin.
What exactly was approved?
Daiwa first obtained a brokerage license in 2021 but held only a 51% stake. In April it paid roughly $100 million to buy out its Chinese partner — last week the CSRC approved that ownership change.
Mizuho took a different path: it won approval to set up a wholly owned brokerage in October 2025, then passed on-site inspections and operational reviews before receiving its license last week.
This means → both Japanese firms can now run their China operations independently, controlling risk management and data security without a local partner.
Why does full ownership matter?
Foreign firms in China's brokerage market historically needed a joint-venture partner — every decision and every data flow passed through two sets of hands.
In plain terms = full ownership means you call the shots — from trading risk controls to client data, no partner sign-off required.
With Daiwa and Mizuho approved, the roster of wholly foreign-owned brokerages in China is growing, joining JPMorgan, Goldman Sachs, and others already operating independently.
Where are the U.S. firms stuck?
Citi filed its application in late 2021. It has since faced shifting Chinese data-security rules and U.S. regulatory scrutiny; CEO Jane Fraser's cost-cutting strategy has also made building a China brokerage from scratch far less attractive.
Citadel Securities submitted its application only in January 2025, after an earlier attempt to acquire Credit Suisse's China business fell through.
This reflects a clear divergence in how Beijing processes applications — Japanese firms move ahead while U.S. firms remain in the queue.
Is geopolitics the decisive variable?
The backdrop to Daiwa and Mizuho's approvals was hardly calm: Japanese PM Sanae Takaichi's recent remarks on Taiwan strained China-Japan relations.
Yet Chinese Vice-Premier He Lifeng stated last month that Japan's businesses are "welcome to operate in China." In March he hosted a senior Japanese trade delegation to discuss expanding bilateral trade and cross-border investment.
This means → political friction did not block financial market access — at least not for Japanese capital. When U.S. firms will clear the same bar remains the market's central unanswered question.
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