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[TOKYO] Mizuho Financial Group Inc will form an alliance with Malayan Banking Bhd on stock research and trading in South-east Asia, people with knowledge of the matter said, as the Japanese lender complements an equities hiring push with partnerships.
Maybank Kim Eng, the investment-banking arm of Malaysia's largest bank, will provide Mizuho's Japanese institutional clients with research on companies in South-east Asia as well as trading execution services, said the people, who asked not to be identified because the information isn't public.
Mizuho is expanding its equities business abroad after recruiting dozens of analysts, salesmen and traders to handle mainly Japanese stocks. It formed a tie-up with UK firm Redburn Europe Ltd earlier this year to offer equity services to Japanese institutional investors that are seeking higher returns as negative interest rates curtail opportunities at home.
The alliance with Kuala Lumpur-based Maybank will also give Mizuho's clients access to senior managers of companies in South-east Asia, the people said.
It's the first time the Tokyo- based bank will offer research and corporate access in the region. Its Mizuho Securities Co unit and Maybank Kim Eng will announce the deal as early as Tuesday, the people said.
Hiroki Saigusa, a Tokyo-based spokesman at Mizuho Securities, declined to comment. Maybank Kim Eng will make an announcement on the matter soon, a spokeswoman said, without giving details.
Like Redburn, the South-east Asian brokerage will earn commissions by trading stocks for Mizuho's clients, and the Japanese bank will get fees for acting as an intermediary on the transactions, according to the people.
Mizuho chief executive officer Yasuhiro Sato is seeking to boost revenue from sales and trading by 25 per cent from about US$3 billion over the next three years, an investor presentation showed in June.
The Japanese firm has hired three analysts in Asia excluding Japan since May, according to an internal memo. Jaj Singh, who was most recently with Nomura Holdings Inc, joined in July as executive director and head of financials research for the region. Dale Gai and Kevin Wang started in May to cover the technology industry.
Mizuho also hired Hiroshi Udagawalast month as deputy head of its equity division in Tokyo. Mr Udagawa worked for UBS Group AG for 17 years.