Source: Bloomberg
Author: Takashi Nakamichi, Takashi Umekawa
A number of banks around the world are shrinking its expansion plans. Hong Kong investment bankers have nothing to do with the evaporation of large orders. A key Chinese stock index has been recorded for the third consecutive year.
Although the prospects are dim, a ambitious broker is still optimistic about China's business.CEO of Yamato Securities said that the plan would turn the Chinese business into a profit as soon as two years, conveying rare optimism.
"We want to achieve profitability as soon as possible, and later or later," Nakada Maki, president of Japan's second largest securities firm, said in an interview. "I think we can change the trend of losses." With the economic downturn and scarce transactions, the business of Wall Street companies in China has slowed down.According to the filing document, the loss of Dahe Securities (China) in 2022 expanded to RMB 61.9 million (about S $ 11.8 million).This is the second year of its operation in China.The company's Japanese competitors and larger Nomura Holdings are fully evaluating its Chinese business after the growth of losses like snowballs.
However, Nakada Michi said that although its Chinese joint venture may lose money this year and next, the size of the deficit is narrowing.He said that the company's consultation business provided by the company or a reorganized Japanese company is expanding. In addition, the company has also begun to conduct stock underwriting transactions.
Nakada Michi said, "If we get a lot of transactions, we can turn losses into profits," because the joint venture company focuses on the investment banking business of relatively light capital.He said the company has no plans to expand the size of employees.At present, the number of employees in Chinese companies is about 100.
The prospect is dim
In the context of turbulent real estate market and weak business confidence, the prospects of China's economic recovery are becoming more darker.Moody's announced earlier this month that the Chinese government's credit rating outlook was adjusted to negative.
In addition, according to people familiar with the matter, Citi ’s time to promote the establishment of a wholly -owned securities business in China is longer than the plan, because the bank needs more time to abide by China’ s data law.Credit Suisse is reported to have issued a bid invitations to the business of the joint venture Creditses Securities (China).After closing the wealth business, the bank is currently engaged in investment banks and brokerage business.
But there are still optimistic people.Ruisui Financial Group, headquartered in Tokyo, has applied for a securities company in the Mainland.
At the same time, Nakada Maki said that the Japanese economy has "completely got rid of" shrinking, so the central bank is likely to withdraw from its unpopular negative interest rate policy before the end of next spring.
He said that Yamato is considering 7%or more salary for local employees in the year since April.
