China bans Nomura senior investment banker from leaving mainland -sources

China Renaissance Holdings

25/09/2023 09:44

HONG KONG, Sept 25 (Reuters) - Authorities in China have
ordered a senior Nomura Holdings  8604.T  banker overseeing the
firm's investment banking operations there not to leave the
mainland, two sources with knowledge of the matter said.
    The ban comes as concerns grow among Western businesses
about darkening prospects in the world's second-largest economy
at a time of slowing growth, coupled with new laws that make for
tougher operating conditions.
    Charles Wang Zhonghe, China investment banking chairman at
Nomura, is prohibited from travelling outside the mainland, said
the sources, who sought anonymity as they were not authorised to
speak to media.
    It was not immediately clear when the exit ban took effect.
Wang was based in Hong Kong, his LinkedIn profile showed, though
his nationality was not immediately known. 
    A Tokyo-based spokesperson for Nomura declined to comment.
Wang did not respond to a Reuters request for comment sent via
the LinkedIn social network.
    The Financial Times newspaper, which first reported the
matter, citing sources, said the ban was connected to China's
investigation into top tech dealmaker Bao Fan and his former
colleague Cong Lin.
    Beijing is investigating Cong, former president of China
Renaissance Holdings  1911.HK , which resulted in the investment
bank's founder Bao being taken away in February, a development
that stunned the business community. 
    Cong was believed to be facing investigation for suspected
wrongdoing while he was chief executive of ICBC International, a
unit of state-owned Industrial and Commercial Bank of China Ltd
(ICBC), Reuters and some media said in February.
    Nomura's Wang had an overlap with Cong at the unit from 2011
to 2016, his LinkedIn page shows. Wang is assisting the
authorities with their investigation of Cong, for which he needs
to stay on the mainland, one of the sources said.
    Asked why the Nomura banker was barred from leaving, Chinese
foreign ministry spokesperson Wang Wenbin said he did not have
knowledge of the situation at a regular news briefing on Monday.
    Wang added, "I would like to reiterate that China has always
been committed to providing a market-oriented, legalised and
internationalised business environment for foreign enterprises
to operate legally."    
    Earlier this year, foreign firms were rattled by Chinese
authorities' raids on U.S. consultancy firms Bain & Company and
Mintz Group. Last month, Beijing fined Mintz about $1.5 million
for doing "unapproved statistical work".
    Scores of Chinese and foreigners have been ensnared by exit
bans, rights group Safeguard Defenders says in a new report.
    A Reuters analysis has found an apparent surge of court
cases involving such bans in recent years, and foreign business
lobbies are voicing concern about the trend.
    The European Union trade chief said on Monday the bloc had
no intention of cutting ties with China even as it takes steps
to lower economic dependencies and "de-risk", but China "could
do a lot" to help reduce the perception of risk.
    Wang, who joined Nomura in 2018 after having worked at
Deutsche Bank and Chinese brokerage Zhong De Securities, besides
ICBC, recently attended work events on the mainland, the second
source added.
    In August last year, he was also appointed as chairman of
Nomura Orient International Securities, the bank's
majority-owned securities business headquartered in the
commercial hub of Shanghai.

 (Reporting by Selena Li and Kane Wu in Hong Kong; Additional
reporting by Makiko Yamazaki in Tokyo and Liz Lee in Beijing;
Editing by Sumeet Chatterjee and Clarence Fernandez)
 ((Selena.Li@thomsonreuters.com; +852 39525868;))