Mizuho Financial Group to Enter Chinese Markets

Japan and Mizuho Financial Group are looking to establish a joint venture in China, becoming the latest foreign companies to enter the Chinese and local banking markets through a wholly-owned subsidiary. The China Securities Regulatory Commission has received bids from a handful of Japan's three largest financial groups, according to a filing released Nov 22. The request comes as Mizuho hopes to tap China and its stock market, which is the largest and most profitable after the United States and Europe.

"Mizuho believes that it's necessary to have our securities firm in China to achieve further growth in the key market, where we launched our banking office four decades ago and more than 30,000 Japanese companies are operating," a spokesperson said.

Citigroup and Standard Chartered are planning securities divestments in China after China allowed foreign securities firms to participate fully in 2019. Mizuho and its biggest Japanese rival, Sumitomo Mitsui Financial Group, had proposed to launch a securities division in 2021 but withdrew their bids due to severe market manipulation in the sector, marketing that led to suspicion from previous managers last year.