Nomura Considers Rebuilding Hong Kong ECM Team as Fundraising Market Rebounds

Japan's Nomura Holdings is considering hiring investment bankers to rebuild its equity capital markets business in Hong Kong, potentially reversing a retreat from the financial hub as Chinese companies return to the market to raise capital.

The bank is holding preliminary internal discussions about recruiting bankers for its Hong Kong operation, two people familiar with the matter told Reuters. The discussions come as equity fundraising in the city has accelerated, creating opportunities for investment banks advising companies on initial public offerings, secondary share sales and convertible bonds.

Nomura has not finalized the size or timing of any recruitment programme, the sources said, requesting anonymity because the discussions are private. The potential expansion has not previously been reported.

The move would mark a shift from the Japanese bank's approach in 2023, when it reduced its Hong Kong investment banking headcount as a prolonged downturn in Chinese dealmaking weakened demand for equity capital markets services.

A Nomura spokesperson told Reuters that the bank continually evaluates business opportunities in response to client needs and market conditions but declined to comment on specific plans.

Nomura's renewed interest comes as Hong Kong has regained its position as a major fundraising destination for Chinese companies. Firms raised HK$753.8 billion, equivalent to approximately $96 billion, through share sales, including IPOs, in the first 10 months of 2026. That represented a 47.5% increase from the corresponding period a year earlier, according to the Hong Kong Exchanges and Clearing website.

The recovery offers investment banks an opportunity to win underwriting mandates and strengthen relationships with companies seeking access to international investors. For Nomura, a larger presence could also help deepen ties with wealthy individuals and founders of privately held businesses as capital from mainland China increasingly flows into Hong Kong.

The city's role in connecting Chinese businesses with global capital makes it particularly important for banks seeking to expand their Asian investment banking operations. A stronger local team would give Nomura greater capacity to pursue mandates and maintain relationships with prospective issuers.

The rebound follows a difficult period for Hong Kong's equity markets. Nomura reduced its investment banking workforce in the city in 2023, cutting about 10 jobs, including positions focused on China-related business, as dealmaking activity weakened.

The bank's broader regional equity capital markets operation remained active during that period. Its performance has improved this year, potentially giving management another reason to consider rebuilding its Hong Kong capabilities.

LSEG data showed that Nomura ranked 12th among bookrunners for Asia-Pacific and Japan equity capital markets transactions through November 9, with $9 billion in proceeds and a 2.53% market share. In the corresponding period of 2025, it ranked 14th, with $4.4 billion in proceeds and a 1.79% share.

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 figures indicate that Nomura has increased its regional dealmaking activity even without a substantial Hong Kong operation. Rebuilding the team could allow it to pursue a larger share of the fundraising opportunities emerging in the city.

Any expansion would put Nomura against established international and Chinese investment banks competing for Hong Kong listings and other equity transactions.

Morgan Stanley, Goldman Sachs, JPMorgan and UBS have active operations in the market, alongside Chinese securities firms such as China International Capital Corp and CITIC Securities. These institutions compete for underwriting mandates, corporate relationships and access to investors, making the market difficult for a returning player to penetrate.

The recent fundraising surge has also become less uniform. Investor enthusiasm for AI-related companies helped drive activity, but concerns are emerging over whether some businesses can generate returns sufficient to justify the large investments required for computing infrastructure, land and energy.

That reassessment has contributed to a more cautious market environment. Chinese intelligent-robot maker Changzhou Microintelligence and pharmaceutical company Ganzhou Hemay Pharmaceutical recently postponed their Hong Kong IPOs, citing market conditions.

However, the postponements have not brought the listing pipeline to a halt. Seven companies, including four in the AI and semiconductor sectors, made their market debuts this week. Sichuan Neautus Traditional Chinese Medicine rose as much as 119.2% in its debut on Wednesday, indicating that investors are still willing to support new listings, although demand varies considerably between offerings.

The pipeline remains substantial. As of October 30, the Hong Kong exchange had 896 Main Board IPO applications, including 599 under processing and 36 approved by the listing committee but awaiting listing.

For Nomura, the scale of pending applications represents a potential source of future underwriting business. However, the number of applications does not guarantee that all companies will complete their listings or that banks will secure mandates.

The timing of any recruitment will therefore matter. Hiring too cautiously could leave Nomura with insufficient capacity to compete for a sustained recovery, while rebuilding too aggressively could expose the bank to higher costs if market sentiment deteriorates or planned listings are delayed.