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Nomura weighs rebuilding its Hong Kong equity capital markets business, sources say

By Reuters News

By Yantoultra Ngui and Miho Uranaka

HONG KONG/TOKYO, Nov 11 (Reuters) - Nomura 8604.T is considering hiring bankers for its Hong Kong equity capital markets business, two people with knowledge of the matter said, in a potential reversal of strategy for the Japanese bank, which had scaled down the operation over the past three years.

Japan's biggest investment bank is holding early discussions internally about hiring bankers in the city for the business that helps companies sell shares, the people said, as it aims to tap into a booming equity fundraising market in the Asian financial hub.

Nomura had cut headcount and retreated partially from the business in Hong Kong in 2023 when market conditions were different and equity capital markets (ECM) deals in the city and China had dried up. ECM bankers help companies raise money through initial public offerings, secondary share sales, and convertible bonds.

The discussions are preliminary, and the Japanese bank has not yet finalised the size and timing of any hiring plan, the people, who requested anonymity, said.

The plan has not been reported previously.

The revival of the business in Hong Kong could help the Japanese bank deepen ties with wealthy individuals and founders of privately held companies as capital from mainland China increasingly flows into the city, the person added.

"We constantly explore a range of business opportunities in light of client needs and market conditions, but do not comment on specific matters," a Nomura spokesperson said in response to a query from Reuters.

Reuters reported in October 2023 that Nomura cut about 10 Hong Kong investment-banking jobs, including roles focused on China-related business, amid a slump in China dealmaking.

The people did not say how many bankers Nomura currently has in Hong Kong in this business.

A recovery in Chinese companies' fundraising in Hong Kong could be giving Nomura a reason to build up its presence again. The city is one of Asia's main markets for Chinese companies selling shares.

Hong Kong's equity capital markets began recovering in early 2025 and rebounded sharply over the year, although sentiment has cooled recently as investors reassess valuations of AI-related offerings.

A Nomura expansion would also come in a competitive market. Morgan Stanley MS.N, Goldman Sachs GS.N, JPMorgan JPM.N and UBS UBSG.S are active there, along with Chinese firms including China International Capital Corp 601995.SS and CITIC Securities 600030.SS.


REGIONAL RANKING

Nomura has kept a broader regional business that helps companies sell shares, despite its smaller Hong Kong presence.

It ranked 12th among bookrunners for Asia Pacific and Japan ECM deals year-to-date through November 9, with $9 billion of proceeds and a 2.53% market share, according to LSEG data.

This compares with 14th place, $4.4 billion and a 1.79% share in the same period of 2025, LSEG data showed.

Its mandates this year included Nippon Steel's 5401.T $3.9 billion convertible bond offering in Japan and Clean Max Enviro Energy Solutions' CLEM.NS $340 million IPO in India, the data showed.

Hong Kong's fundraising market has revived strongly this year. Companies raised HK$753.8 billion ($96 billion) through share sales including IPOs in the first 10 months of 2026, up 47.5% from a year earlier, according to the Hong Kong Exchanges and Clearing Ltd (HKEX) 0388.HK website.

However, the broader market has turned more cautious lately as investors reassess whether AI-related offerings can generate returns that justify soaring spending on computing power, land and energy.

Chinese intelligent-robot maker Changzhou Microintelligence 3275.HK and drugmaker Ganzhou Hemay Pharmaceutical 0054.HK recently postponed their Hong Kong IPOs, citing market conditions.

Still, Hong Kong's equity fundraising market remained active, with seven companies, including four in the AI and chip sectors, debuting this week. Sichuan Neautus Traditional Chinese Medicine 2206.HK jumped as much as 119.2% in its Hong Kong market debut on Wednesday.

As of October 30, HKEX had 896 Main Board IPO applications, with 599 under processing and 36 approved by the listing committee but awaiting listing, according to the HKEX website.

($1 = 7.8419 Hong Kong dollars)

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