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May 9 (NBD) -- The China Securities Regulatory Commission (CSRC) has received an application from Nomura Holdings Inc (Nomura), Japan’s biggest brokerage and investment bank, to set up a joint-venture brokerage in China, said the regulator on Tuesday in a statement published on its website.

If approved, the Japanese bank will be the second foreign brokerage to hold a controlling stake in a joint-venture securities firm after Beijing pledges to further open its financial markets.

Nomura aims to hold a 51 percent stake in the venture. The commission will review the application effectively and according to the law.

Nomura announced Tuesday night that the company was currently discussing the details with the relevant parties and was unable to comment further at this stage.

Nomura appointed Lu Ting as its chief China economist on Tuesday to lead a team of economists that forecasts China’s economic trajectory and drives through leadership on macroeconomic themes shaping the country.

Lu holds a master and a bachelor degree in economics of Peking University and a PhD in economics of University of California, Berkeley. Prior to joining Nomura, he served 9 years in the Bank of America Merrill Lynch and two years in Huatai Securities.

In September 2008 when Lehman Brothers filed for bankruptcy, the then 33-year-old Lu made predictions which turned to be precise. Lu predicted at the time that Chinese yuan would stabilize rather than depreciate and China GDP growth rate would rise above 8 percent in 2009.

He was recognized as the most accurate forecaster among Chinese economists ranked by Bloomberg in 2011 and 2012.

Li Xunlei, Chief Economist of Zhongtai Securities, said at 2018 Boao Forum that China’s capital market is relatively mature and the influx of foreign capital is beneficial for competition. In addition, he predicted that big brokerages will have greater market shares in China, while smaller ones will be kicked out.

In fact, foreign capitals or not, the domestic securities industry will go through a reshuffle. And the influx of foreign capital will only add to more drastic changes, Li added.

Email: tanyuhan@nbd.com.cn