Nomura Holdings will establish a joint venture in the China (Shanghai) Pilot Free Trade Zone with three local companies. Shanghai Nomura Lujiazui Investment Management Co will be a consolidated subsidiary of Nomura Holdings with registered capital of CNY30 million. The Tokyo-based company will be the first asset management company to set up shop in the 28-square-kilometer FTZ. Nomura will have a 60% stake in the company, while Shanghai Lujiazui Financial Holdings Co and Lujiazui International Trust, two affiliates of the state-owned Shanghai Lujiazui Development (Group) Co, will have a combined 30%. Shanghai Jiu You Equity Investment Fund Management will own the remaining 10%. The joint venture will provide information on financial markets and products to financial institutions in the Shanghai FTZ. According to a report by Guotai Junan Securities, China’s personal asset management market ranks third largest worldwide, with an estimated size of USD16.5 trillion and annual growth of 25%. The new Nomura joint venture will not be allowed to directly sell financial products to Chinese clients, but observers say it can help Nomura familiarize itself with the Chinese market so as to promote its sales via partners. By the end of April, a total of 20 foreign banks had filed to set up branches in the FTZ. Among them, 10 banks, including Citibank and HSBC Holdings, have already opened for business. “Financial reform in the Shanghai FTZ advances steadily, and there are more innovations in the pipeline,” said Tu Guangshao, Vice Mayor of Shanghai.