by CHEN Jing

Japan's Mizuho Securities (China) Co., Ltd. has been formally established, making it the first Japanese-owned securities firm to operate in China without a local partner, as Beijing continues to ease restrictions on foreign participation in its capital markets.

The brokerage, which completed registration on January 16, is fully owned by Mizuho Securities, the core brokerage unit of Mizuho Financial Group. It has registered capital of 2.3 billion yuan.

Mizuho's approval brings the number of wholly foreign-owned securities firms operating onshore in China to six. Other global banks that have secured similar licenses include JPMorgan, Goldman Sachs, Standard Chartered, BNP Paribas and UBS.

The new firm's senior management team highlights its localization strategy. Hiroshi Ohtahara has been appointed chairman, while GENG Xin serves as vice-chairman and chief executive. Geng has more than three decades of experience across Chinese and international financial institutions and previously led the establishment of Daiwa Securities (China) in 2019, giving him first-hand experience in building a foreign-backed brokerage in China.

Mizuho Securities (China) has opted for a selective business model, avoiding the fiercely competitive retail brokerage and wealth management segments dominated by Chinese firms. Instead, it will focus on securities underwriting, proprietary trading and asset management related to securitization, according to people familiar with the strategy.

Industry observers say the approach reflects the realities facing foreign brokers in China. Local securities houses have spent decades building nationwide branch networks, close ties with banks and large retail client bases, making it difficult for foreign entrants to gain scale in mass-market brokerage.

People close to the firm said Mizuho will initially position fixed-income business as its main growth engine, targeting domestic bond sales and trading. The strategy draws on the parent group's strengths: Mizuho has long been a leading player in Japan's debt capital markets, serving about 70% of listed Japanese companies and maintaining deep expertise in fixed-income products.

"Fixed income is a natural entry point for foreign brokers in China," said a former foreign investment banker, adding that Mizuho's Japanese client base could help it connect cross-border bond issuance and financing needs between China and Japan.

Mizuho submitted its application to Chinese regulators in November 2023 and received approval from the China Securities Regulatory Commission in September 2025, following multiple rounds of feedback and document revisions.

With its launch, the total number of foreign-invested securities firms in China has risen to 12, evenly split between wholly foreign-owned entities and joint ventures, according to data compiled by Jiemian News. Analysts say Mizuho's entry is symbolically significant, marking a milestone for Japanese financial institutions and underscoring China's gradual opening of its capital markets to overseas players.