THIS
POST WAS ORIGINALLY PUBLISHED MAY 17, 2007
NOMURA’s Effort to Support Russian Stock Market
Today a lengthy interview was published in KOMMERSANT DAILY with Hiroshi Toda, Chief Operating Officer (COO), International Operations Officer of Nomura Holdings, Inc.
This is an interesting view on situation on the Russian stock market and investment banking industry in Russia. It is not the first time for NOMURA to be entering Russian market. Before 1998 the bank dealt with shares of blue chips. After the default, NOMURA left Russia, having lost $600 million.
So, here are the highlights of the interview:
- Moscow is the first springboard from which Nomura plans to start expansion to the markets of Central and Eastern Europe. Currently the Moscow office that was opened March 13, has only 5 employees and is working under the name Nomura (CIS) Ltd.
- Asian investors are represented on the Russian market only by NOMURA; and only NOMURA may bring Asian investors here. (Well, this is questionable, - SUMITOMO is already in Russian with a number of investments since 2005 in telecommunications companies)- At the same time NOMURA has a good access both to Asian and to European investor communities
- The time for Russian companies’ listing at HK, Singapore or Tokyo exchanges is not good yet – their requirements are more stringent than LSE’s. However, when the Asian market will be saturated with Chinese companies, there might be a place for Russians too. (This is also questionable - I met with the management, including Mr. Paul Chow, of Hong Kong Exchanges, Chief Executive, that told me different story)
Corporate Financing – Major Goal
- The major goal of the Moscow Office – to serve as the bridge between the Russian corporate borrowers and the Japanese capital (and Asian too).
- There would be no brokerage activities, the biggest priority is underwriting
- About one third of world global funds have to direct access to the Russian stock market – and NOMURA plans to use this to its advantage.
- Educational and informational activities are one of the top priorities – Asian investors know a little about Russian and its opportunities
Typical Investor Approach
- Russian clients would be pleasantly surprised with NOMURA’s suggestions
- As the rule, the Japanese investor would invest a small amount in the companies that are working in the natural resources sector
- Japanese investors are less speculative, rather long-term ones
- That would guarantee the stability of Russian stock market- NOMURA will look into other sectors too: retail, financial, etc.
On the Russian Market:- the Russian stock market is now more fundamental and less speculative
- a good number of domestic and foreign investors emerged
- there are some structural deficiencies that preclude direct participation of international investments funds; however, the Russian regulator authorities are working on this.
So, here we are with the new opportunity for Russian companies to attract financing - this time from Asia
This is an interesting view on situation on the Russian stock market and investment banking industry in Russia. It is not the first time for NOMURA to be entering Russian market. Before 1998 the bank dealt with shares of blue chips. After the default, NOMURA left Russia, having lost $600 million.
So, here are the highlights of the interview:
- Moscow is the first springboard from which Nomura plans to start expansion to the markets of Central and Eastern Europe. Currently the Moscow office that was opened March 13, has only 5 employees and is working under the name Nomura (CIS) Ltd.
- Asian investors are represented on the Russian market only by NOMURA; and only NOMURA may bring Asian investors here. (Well, this is questionable, - SUMITOMO is already in Russian with a number of investments since 2005 in telecommunications companies)- At the same time NOMURA has a good access both to Asian and to European investor communities
- The time for Russian companies’ listing at HK, Singapore or Tokyo exchanges is not good yet – their requirements are more stringent than LSE’s. However, when the Asian market will be saturated with Chinese companies, there might be a place for Russians too. (This is also questionable - I met with the management, including Mr. Paul Chow, of Hong Kong Exchanges, Chief Executive, that told me different story)
Corporate Financing – Major Goal
- The major goal of the Moscow Office – to serve as the bridge between the Russian corporate borrowers and the Japanese capital (and Asian too).
- There would be no brokerage activities, the biggest priority is underwriting
- About one third of world global funds have to direct access to the Russian stock market – and NOMURA plans to use this to its advantage.
- Educational and informational activities are one of the top priorities – Asian investors know a little about Russian and its opportunities
Typical Investor Approach
- Russian clients would be pleasantly surprised with NOMURA’s suggestions
- As the rule, the Japanese investor would invest a small amount in the companies that are working in the natural resources sector
- Japanese investors are less speculative, rather long-term ones
- That would guarantee the stability of Russian stock market- NOMURA will look into other sectors too: retail, financial, etc.
On the Russian Market:- the Russian stock market is now more fundamental and less speculative
- a good number of domestic and foreign investors emerged
- there are some structural deficiencies that preclude direct participation of international investments funds; however, the Russian regulator authorities are working on this.
So, here we are with the new opportunity for Russian companies to attract financing - this time from Asia
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