Japanese financial groups Mizuho Financial Group and Daiwa Securities Group have cleared the final regulatory hurdles to launch wholly owned securities businesses in mainland China, Bloomberg reported on October 20, citing a person familiar with the matter.

According to the report, both companies were notified last week that they had passed the final reviews required to begin operations. The development advances their efforts to establish independent businesses in China’s domestic securities market, while US competitors Citigroup and Citadel Securities continue to await regulatory approval.

Mizuho advances China securities expansion

Mizuho applied to establish a securities company in mainland China in November 2023 and received regulatory approval for the establishment of Mizuho Securities (China) Co., Ltd. in September 2025.

Following the latest regulatory clearance, Mizuho Securities confirmed that preparations for the launch are continuing. The company plans to focus on capital-market services, including fundraising and bond-related solutions for issuers and investors in China and overseas.

The wholly owned subsidiary is expected to strengthen Mizuho’s ability to serve clients seeking financing and cross-border investment opportunities.

Daiwa agrees to $100 million buyout

Daiwa Securities has also moved closer to establishing fully independent operations in China after agreeing in April 2026 to acquire the remaining stakes held by its local joint-venture partners for approximately $100 million.

The company had received approval in 2021 to establish its Chinese securities joint venture with a 51% ownership stake. Buying out its local partners would enable Daiwa to consolidate ownership and operate through a wholly owned structure.

Chinese authorities reportedly approved the final requirements for the ownership change last week. Daiwa declined to comment on the latest development, according to the reports.

US competitors still await approval

The regulatory progress puts the two Japanese financial groups ahead of some US competitors seeking to establish wholly owned securities businesses in China.

Citigroup has been awaiting approval since applying in late 2021 for a wholly owned mainland brokerage licence. Market maker Citadel Securities, which submitted its application in early 2025, is also waiting for regulatory clearance.

The differing timelines highlight the challenges foreign financial institutions face when expanding into China’s domestic securities market.

Outlook for China’s securities market

The approvals could give Mizuho and Daiwa greater control over their local operations and a more direct route to serving Chinese clients. However, neither company has announced a definitive date for commencing business, and the financial impact of their expansion remains uncertain.

Chinese financial regulators had not immediately responded to requests for comment, according to Reuters. The companies’ ability to grow will depend on operational readiness, client demand and competition in the domestic market.