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Daiwa, Mizuho clear final hurdles to launch China securities units

Daiwa, Mizuho clear final hurdles to launch China securities units

Money Moves

Citigroup wins a Shanghai brokerage after a five-year wait, three days after Daiwa and Mizuho cleared their final reviews

October 23rd, 2026: CSRC approves Citigroup Securities (China)

Overview

Updated Oct 25

China's securities regulator approved Citigroup's wholly owned brokerage on October 23, ending a wait that started with a December 2021 application. Citigroup Securities (China) will be based in Shanghai with 1.2 billion yuan of registered capital, about $178 million.

Daiwa Securities and Mizuho Financial Group cleared the last review for their own wholly owned units three days earlier and are preparing to open. Citadel Securities, which applied in early 2025, is still waiting.

Why it matters

Full-ownership licences decide which foreign banks can underwrite and trade Chinese securities directly, instead of through local partners.

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Key Indicators

7
Wholly foreign-owned brokerages approved in China
Citigroup Securities (China) is the seventh, after J.P. Morgan, Goldman Sachs, Standard Chartered, BNP Paribas, UBS and Mizuho.
$100M
Daiwa's buyout of Chinese JV partners
706 million yuan paid for the 49% stakes held by two Beijing state firms.
5 yrs
Citigroup's wait for a China brokerage licence
Applied in December 2021; the CSRC approved the unit on October 23, 2026.
1.2B yuan
Registered capital of Citigroup Securities (China)
Shanghai-based unit, wholly owned by Citigroup; about $178 million.
2.3B yuan
Registered capital of Mizuho Securities (China)
Beijing-based unit, fully owned by Mizuho Securities.

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People Involved

He Lifeng
He Lifeng
Chinese Vice Premier
Hosted Japanese trade delegations in 2026

Organizations Involved

Daiwa Securities Group
Daiwa Securities Group
Japanese securities brokerage
Cleared final hurdle to fully own its China securities unit

One of Japan's largest securities brokerages, consolidating full control of its China joint venture.
Mizuho Financial Group
Mizuho Financial Group
Japanese banking group
Cleared final hurdle to launch wholly-owned China securities unit

Major Japanese banking group launching Mizuho Securities (China) in Beijing.
Citigroup
Citigroup
US bank
Approved on October 23, 2026 to set up a wholly owned brokerage in Shanghai

US bank approved to run a wholly owned brokerage in Shanghai, ending a wait since 2021.
Citadel Securities
Citadel Securities
US market maker
Application pending since early 2025

Chicago-based market maker awaiting a China securities licence.
China Securities Regulatory Commission
China Securities Regulatory Commission
Federal Agency
Approved Citigroup's wholly owned brokerage on October 23, 2026

Chinese regulator overseeing securities markets and foreign licences.

Timeline

June 2021 October 2026

9 events Latest: October 23rd, 2026 · 3 weeks ago
Tap a bar to jump to that date

  1. CSRC approves Citigroup Securities (China)

    Latest Regulatory

    The regulator clears Citigroup's wholly owned brokerage in Shanghai with 1.2 billion yuan of registered capital. Citi has six months to complete business registration.

  2. Bloomberg reports approvals

    Report

    Bloomberg reports Daiwa and Mizuho cleared the last hurdle to launch China securities units.

  3. Final approvals granted

    Regulatory

    Chinese regulators approve Daiwa's ownership change and give both firms final clearance.

  4. Daiwa buys out JV partners

    Acquisition

    Daiwa agrees to buy out its Chinese joint venture partners for 706 million yuan, about $100 million.

  5. He Lifeng hosts Japanese delegation

    Diplomacy

    Vice Premier He Lifeng meets a Japanese trade delegation to discuss investment and trade.

  6. Mizuho registers Beijing business

    Legal

    Mizuho Securities (China) obtains its business registration certificate in Beijing's Chaoyang district.

  7. CSRC approves Mizuho unit

    Regulatory

    CSRC approves Mizuho Securities (China), registered capital of 2.3 billion yuan, based in Beijing.

  8. Mizuho files China application

    Application

    Mizuho formally applies to set up a mainland China securities unit.

  9. Daiwa China venture licensed

    Regulatory

    Daiwa's 51%-owned securities joint venture in China receives a business licence.

Scenarios

1

Daiwa and Mizuho launch mainland operations by mid-2027

Likely Resolves by Q2 2027

Discussed by: Reuters; Bloomberg

Mizuho's spokesperson said the firm continues preparations for launch. Daiwa completes its wholly-owned conversion. Both begin trading under formal operating licences, giving Japanese brokerages their first fully independent mainland platforms.

2

Citigroup and Citadel Securities still waiting at end-2027

Likely Resolves by End of 2027

Discussed by: Bloomberg report

Beijing continues to prioritise Japanese applicants. Citigroup's late-2021 application and Citadel Securities' early-2025 application remain undecided through 2027, keeping the two US firms out of the wholly-owned brokerage market.

3

Another foreign firm wins a China securities licence by end-2027

Possible Resolves by End of 2027

Discussed by: Lianhe Zaobao reporting on He Lifeng's outreach; foreign-access trend analysis

If the approvals reflect broader easing rather than Japan-specific diplomacy, other foreign applicants win licences within the next year. The March meeting with Japanese business and Beijing's stated welcome to foreign investment suggest continued opening.

4

Citigroup Securities (China) starts onshore trading and underwriting by mid-2027

Likely Resolves by Q2 2027

Discussed by: Citigroup; China Securities Regulatory Commission

Citi said it will complete statutory and regulatory steps and build a local team. The licence covers equities brokerage, underwriting, research and principal trading, so the unit can serve Citi's corporate and institutional clients onshore. The CSRC gave the firm six months to finish business registration.

5

Citadel Securities still waiting for a China licence at end-2027

Possible Resolves by End of 2027

Discussed by: Bloomberg reporting cited by Reuters

Citadel Securities applied in early 2025 for a wholly owned brokerage and had not been approved as of October 2026, when the CSRC cleared Citigroup. The application remains the last major US request on the queue.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2020-2021

Wall Street banks take full control of China ventures (2020-2021)

Beijing lifted the cap that limited foreign investors to minority stakes in Chinese securities firms in 2020. Goldman Sachs, Morgan Stanley, and JPMorgan moved quickly, buying out Chinese partners to run wholly-owned mainland securities businesses.

Then

Three US banks became the first wholly foreign-owned securities firms in mainland China.

Now

The buyout structure became the template for later foreign entrants, including Daiwa and Mizuho.

Why this matters now

Reuters noted Daiwa's April 2026 buyout followed 'similar moves' by these three banks. The new Japanese approvals extend the wholly-owned model to firms that joined later.

2001-2006

China opens finance after WTO accession (2001-2006)

After China joined the World Trade Organization in 2001, its regulators gradually allowed foreign securities firms into the mainland market, limited to minority stakes in joint ventures with domestic partners.

Then

Foreign brokerages entered China through local joint ventures, typically holding a third to half of the equity.

Now

The joint venture model defined foreign participation until Beijing removed ownership caps in 2020.

Why this matters now

Daiwa's 51%-owned joint venture, licensed in 2021, was a product of this earlier opening — and the structure it has now bought out entirely.

Sources

(14)
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Investing.com MarketScreener UK Lianhe Zaobao Investing.com Japan MarketScreener Hong Kong TokenPost Reuters United Daily News FinTalk Citigroup Xinhua Caixin Global AP News Bloomberg Law