What's happened
Two Japanese firms have cleared final steps to begin China operations as Beijing welcomes a trade delegation. BPCE’s banking arm plans to buy Tokyo advisory firm Sangyo Sosei, while other moves show continued cross-border investment.
What's behind the headline?
What this means for readers
- China’s regulatory nods pave the way for Japanese firms to expand in Asia’s largest market.
- Cross-border activity may boost Tokyo’s financial services export power and provide new avenues for Japanese capital to reach Chinese clients.
- Watch for how Beijing balances market access with national security controls as more firms seek a foothold.
The broader context
- The reported deal signals ongoing integration of regional finance ecosystems, with potential spillovers to related industries and supply chains.
How we got here
China has signaled a warmer stance toward Japanese financial activity, following high-level talks led by Vice Premier He Lifeng with Japanese officials in March. The momentum comes amid a broader push to expand bilateral trade and cross-border investment between the two economies.
Our analysis
The Japan Times reports that two Japanese firms have cleared the final hurdle to operate in China after high-level talks hosted by Vice Premier He Lifeng, with confirmations from Mizuho’s securities unit and no comment from Daiwa. Bloomberg notes BPCE’s asset management arm is buying Sangyo Sosei Advisory in Tokyo; details on price are undisclosed. Bloomberg also corroborates the China nods linked to the March delegation’s discussions on expanding bilateral trade. Quote snapshot: - “The official nods came after Vice Premier He Lifeng hosted a senior trade delegation from Japan in March…” - “A Daiwa spokesperson declined to comment.” Context: These moves come amid a broader push to deepen cross-border investments between Japan and China.
Go deeper
- Will Japan escalate investment into China as Beijing opens more sectors?
- Could this lead to more cross-border funding in Tokyo’s financial sector?
- What safeguards will China impose on these new operations?
More on these topics
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Japan - Country in East Asia
Japan is an island country of East Asia in the northwest Pacific Ocean. It borders the Sea of Japan to the west and extends from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south.
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United States - Country in North America
The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
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Mizuho Financial Group - Financial services company
Mizuho Financial Group, Inc., abbreviated as MHFG, or simply called Mizuho, is a banking holding company headquartered in the Ōtemachi district of Chiyoda, Tokyo, Japan.
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He Lifeng - Chinese Politician
He Lifeng is a Chinese politician and the current Minister in charge of the National Development and Reform Commission. Earlier in his career, he worked in Fujian province and Tianjin.
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People's Republic of China - Country in East Asia
China, officially the People's Republic of China, is a country in East Asia. It is the world's most populous country, with a population of around 1.4 billion in 2019.
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Daiwa Securities Group - Public company
Daiwa Securities Group Inc. (大和証券グループ本社, Daiwa Shōken Gurūpu Honsha) is a Japanese investment bank that is the second largest securities brokerage after Nomura Securities. Major subsidiaries include Daiwa Securities, which offers retail services such as online trading to individual investors and investment banking services in Japan, as well as Daiwa Capital Markets, the firm's international investment banking arm (with a presence across Asia, Europe and North America) that provides M&A advisory, sales and trading services in a variety of financial products to corporate and institutional clients. Other group companies provide asset management, research and private equity fund services. The company is the fourth largest shareholder in SL Green Realty.