Japan's Nomura to set up joint venture in Shanghai free trade zone
HONG KONG May 19 (Reuters) - Nomura Holdings Inc will establish a joint venture in the Shanghai free trade zone aimed at marketing investment products and advice to institutions within the zone, the Japanese investment bank said on Monday.
Nomura will own 60 percent of the proposed venture, with the rest divided between Shanghai Lujiazui Financial Holdings Co Ltd, which is the holding company of a state-owned developer, and local fund Shanghai Jiu You Equity Investment Fund Management LLP.
Under the structure of the joint venture, Nomura cannot sell financial products directly to Chinese clients. Instead it can offer advice and financial products to branches of its local partner, which can then sell them to investors.
The venture will be launched with 30 million yuan ($4.81 million) in capital. ($1 = 6.2334 Chinese Yuan) (Reporting by Lawrence White; Editing by Christopher Cushing)