Nomura's China losses narrow as brokerage seeks turnaround
[NEW YORK] Nomura Holdings posted a smaller loss at its joint venture in China last year, as the brokerage seeks to turn around the business in the face of slowing growth and trade tensions.
Net loss at Shanghai-based Nomura Orient International Securities narrowed 30 per cent to 128.7 million yuan (S$23 million) in the year ended Dec 31, a statement showed this week, marking the second straight year of improvement.
Nomura's majority-owned venture with Oriental International (Holding) and Shanghai Huangpu Investment Holding (Group) has continued to lose money since its inception in late 2019. Despite last year's improvement, credit impairment losses more than doubled, it said.
The unit has been undergoing an overhaul after its initial ambition to grow the wealth management business veered off track during the pandemic. It has shifted its priority to expanding in areas including research and trading, while it is seeking a new chief executive officer, Bloomberg reported this month.
The venture said it expects China's economic growth to slow this year as exports come under pressure from the Trump administration's trade policies. It will seek to generate stable and positive returns from proprietary trading in anticipation of more monetary easing in China, according to the statement.
'We continue to work with our JV partners to make our business in China profitable,' Nomura said in a statement, declining to comment further.
Headcount at the venture fell to 208 last year from 246 a year earlier. When it started, the firm had targeted raising its employee numbers to 500 by 2023.
China makes up a relatively small part of Tokyo-based Nomura's international business, even as Asia's largest economy was once a pillar of the firm's growth strategy. Chief executive officer Kentaro Okuda instead identified India and the Middle East as growth regions in a presentation released about a year ago, without mentioning China.
Nomura's losses in China contrast with profits for the broader Asia region. Pretax profit from Asia and Oceania, excluding Japan, more than doubled to 52 billion yen in the 12 months ended Dec 31, according to filings. BLOOMBERG
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Straits Times
2 hours ago
- Straits Times
EU proposes lowering Russia oil price cap in new sanctions
An apartment building hit by a Russian drone strike, in Odesa, Ukraine, on June 10. PHOTO: REUTERS BRUSSELS - The European Union on June 10 proposed slashing a price cap on Russia's global oil exports, as part of a new package of sanctions over Moscow's war in Ukraine. The move comes ahead of a Group of 7 (G-7) summit in Canada next week where allies will push US President Donald Trump to be more aggressive in punishing the Kremlin. 'We are ramping up pressure on Russia, because strength is the only language that Russia will understand,' European Commission president Ursula von der Leyen said. 'Our message is very clear, this war must end. We need a real ceasefire, and Russia has to come to the negotiating table with a serious proposal.' The European Commission, the EU's executive, suggested cutting the current oil price cap from US$60 to US$45 as Moscow drags its feet on a ceasefire in Ukraine. The cap is a G-7 initiative aimed at limiting the amount of money Russia makes by exporting oil to countries across the world. Set at US$60 by the G-7 in 2022, it is designed to limit the price Moscow can sell oil around the world by banning shipping firms and insurance companies dealing with Russia to export above that amount. To have most impact, the EU and other G-7 partners need to get the United States to follow suit and agree to the cut in level. But Mr Trump so far has frustrated Western allies by refusing to impose sanctions on Russia, despite President Vladimir Putin's failure to agree to a Ukraine ceasefire. 'My assumption is that we do that together as G-7,' Dr von der Leyen said. 'We have started that as G-7, it was successful as a measure from the G-7, and I want to continue this measure as G-7.' 'Massive' sanctions threatened Mr Trump last week said he had a deadline to sanction Russia 'in my brain', but warned that he may also target Kyiv if no advances are made in his peace push. European leaders in May threatened Moscow with 'massive' sanctions if it did not agree a truce. 'Russia lies about its desire for peace. Putin is taking the world for a ride. Together with the United States, we can really force Putin to negotiate seriously,' EU foreign policy chief Kaja Kallas said. As part of its 18th round of sanctions since Russia's 2022 invasion, the EU also proposed measures to stop the defunct Baltic Sea gas pipelines Nord Stream 1 and 2 from being brought back online. Officials said they would also look to target some 70 more vessels in the 'shadow fleet' of ageing tankers used by Russia to circumvent oil export curbs. The EU in addition is looking to sever ties with a further 22 Russian banks and add more companies, including in China, to a blacklist of those helping Moscow's military. One EU diplomat described the latest proposals as 'one of the most substantive and significant packages we've discussed recently'. 'It will hurt Russia's ability to finance its war machine. Now let's see how the discussions evolve.' The sanctions will need to be agreed by all 27 EU countries, and could face opposition from Moscow-friendly countries Hungary and Slovakia. AFP Join ST's Telegram channel and get the latest breaking news delivered to you.

Straits Times
3 hours ago
- Straits Times
US issues sanctions against charities supporting Hamas, PFLP
The US Treasury said it will continue to seek disruptions to the financial capabilities of Hamas. PHOTO: REUTERS WASHINGTON - The United States imposed sanctions on June 10 targeting individuals and sham charities that it said were prominent financial supporters of the Palestinian groups Hamas and the Popular Front for the Liberation of Palestine. The individuals and groups targeted were funding Hamas' military wing under the pretense of doing humanitarian work, in Gaza and internationally, the Treasury Department said. The Treasury said it will continue to seek disruptions to the financial capabilities of Hamas, which still holds hostages it seized in the group's Oct 7, 2023, attack on Israel. The entities sanctioned included the Gaza-based Al Weam Charitable Society, the Turkey-based Filistin Vakfi, the El Baraka Association for Charitable and Humanitarian Work, which is based in Algeria, the Netherlands-based Israa Charitable Foundation and the Associazione Benefica La Cupola d'Oro, based in Italy, the department said in a statement. The five individuals targeted on June 10 were leaders associated with the groups, it said. "Today's action underscores the importance of safeguarding the charitable sector from abuse by terrorists like Hamas and the PFLP, who continue to leverage sham charities as fronts for funding their terrorist and military operations," Deputy Secretary Michael Faulkender said in the statement. Hamas and PFLP have a long histroy of abusing non-profit organisations and charities, the Treasury said. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
4 hours ago
- Business Times
Consortium's privatisation offer for Amara closes with 97.74% valid acceptances
[SINGAPORE] The privatisation offer for hotel and property group Amara finally succeeded on Tuesday (Jun 10), with valid acceptances representing 97.74 per cent of the total shares. As at the close of the offer at 5.30 pm on Tuesday, the total number of shares owned, controlled or agreed to be acquired by DRC Investments, together with valid acceptances of the offer, amounted to 562 million shares. DRC, a consortium led by property developer Hwa Hong, will exercise its right to compulsorily acquire all remaining shares at the offer price of S$0.895 a share. Amara will subsequently be delisted from the Singapore Exchange. DRC said it has no intention to preserve the group's listing status and will instead make it a wholly owned subsidiary. DRC is a special-purpose vehicle that is 35 per cent held by a fund sponsored by formerly Singapore-listed Hwa Hong and Malaysia-based Newfields. Another 35 per cent shareholder is a wholly owned subsidiary of local developer Wing Tai. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Albert Teo, Amara's chairman and chief executive officer, and his daughter, chief operating officer Dawn Teo, hold the remaining 30 per cent of DRC. The S$0.895 offer price represents a 27 per cent premium over Amara's closing price of S$0.705 on Apr 23, ahead of the trading halt called by the company the following day. It is also a 33 per cent premium over Amara's net asset value per share as at end-December 2024. In a previous bourse filing, DRC cited low trading liquidity and challenging macroeconomic conditions for Amara's privatisation. This includes a rise in protectionist policies and shifting trade agreements, which could disrupt supply chains and increase costs for businesses. These may result in higher operations costs, squeezing profit margins and affecting long-term growth prospects, it said. 'The offer represents a unique cash exit opportunity for shareholders to liquidate and realise their entire investment at a premium, an option which may not otherwise be readily available due to the low trading liquidity of the shares,' it added. The latest privatisation offer was the second time Amara was the target of a privatisation deal. In 2023, the group received a voluntary cash offer at S$0.60 a share from Amethyst Assets, a consortium linked to Albert Teo, other members of his family and private equity investor Dymon Asia. But the attempt fell short of the 90 per cent threshold for acceptances, at 88.39 per cent in shareholding interest.