Nomura weighs rebuilding Hong Kong equity capital markets business as fundraising booms

Japan's biggest investment bank, Nomura, is considering rebuilding its Hong Kong equity capital markets (ECM) business. Reuters reported, citing two people with knowledge of the matter, that Nomura is holding early internal discussions about hiring bankers in the city for the business that helps companies sell shares, in a potential reversal of a strategy that saw it scale down the operation over the past three years.

A pullback three years ago as the market dried up

Nomura cut headcount and retreated partially from the business in Hong Kong in 2023, when market conditions were different and equity capital markets deals in the city and China had dried up. Reuters reported at the time that Nomura cut about 10 Hong Kong investment-banking jobs, including roles focused on China-related business. The people said the discussions are preliminary and the bank has not yet finalised the size and timing of any hiring plan. A Nomura spokesperson told Reuters the bank constantly explores a range of business opportunities in light of client needs but does not comment on specific matters.

Hong Kong fundraising up 47.5% to HK$753.8 billion

Hong Kong's equity fundraising market has revived strongly this year. Companies raised HK$753.8 billion (about $96 billion) through share sales including IPOs in the first 10 months of 2026, up 47.5% from a year earlier, according to Hong Kong Exchanges and Clearing (HKEX). Seven companies are debuting in Hong Kong this week, including four in the AI and chip sectors. Sentiment has cooled recently, however, as investors reassess whether AI-related offerings can generate returns that justify soaring spending on computing power, land and energy, and two companies recently postponed their Hong Kong listings, citing market conditions.

Nomura's Asia-Pacific ECM ranking climbs to 12th

Nomura 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 — up from 14th place, $4.4 billion and a 1.79% share in the same period of 2025. Its mandates this year included Nippon Steel's $3.9 billion convertible bond offering in Japan and Clean Max Enviro Energy Solutions' $340 million IPO in India. The revival of the business in Hong Kong could also help Nomura deepen ties with wealthy individuals and founders of privately held companies as capital from mainland China increasingly flows into the city, one of the people said. The market is competitive: Morgan Stanley, Goldman Sachs, JPMorgan and UBS are active there, along with Chinese firms including China International Capital Corp and CITIC Securities. Source: Reuters.