Nomura, Japan's largest investment bank, is in early discussions about adding bankers to its Hong Kong equity capital markets (ECM) team, according to a Reuters report citing two people familiar with the matter. The move would reverse a pullback in 2023, when the bank cut roles as dealmaking in Hong Kong and mainland China slowed.
The potential rebuild comes as Hong Kong's share-sale market shows signs of a strong recovery. Companies raised HK$753.8 billion (about $96 billion) through share sales in the first 10 months of 2026, a 47.5% jump from the same period a year earlier. The pipeline also looks healthy: Hong Kong Exchanges and Clearing (HKEX) had 896 Main Board IPO applications as of October 30.
For everyday investors, this is a signal that the city's capital markets are heating up again after a sluggish stretch. But it also highlights the selective nature of the current demand, with some AI-related issuers delaying their listings as investors debate valuations.
What is equity capital markets?
Equity capital markets is the part of an investment bank that helps companies raise money by selling shares. That includes initial public offerings (IPOs), follow-on share sales (when a listed company issues more shares), and convertible bonds (debt that can be converted into shares). Banks that lead these deals are called "bookrunners"—they manage the process, market the deal to investors, and earn fees for their work.
Nomura's ECM team in Hong Kong focuses on helping companies in the region tap public markets. After cutting roles in 2023, the bank is now considering rebuilding its senior bench to compete for these lucrative mandates.
Why the turnaround?
The 2023 cuts were a response to a dealmaking drought. High interest rates, geopolitical tensions, and a slowdown in China's economy had made investors cautious, and many companies put their listing plans on hold. That meant fewer deals and thinner fee pools for banks.
Now the environment is improving. The 47.5% rise in share sales suggests that companies are returning to the market, and the large number of IPO applications indicates that more are waiting in the wings. For Nomura, rebuilding its team could help it win more bookrunner roles and pick up additional business from the same clients.
According to London Stock Exchange Group (LSEG), a market-data provider, Nomura ranked 12th in Hong Kong ECM underwriting year-to-date through November 9, with $9 billion in proceeds. That's up from $4.4 billion in the same period in 2025—a sign that the bank is already benefiting from the rebound, even without a full team in place.
What it means for investors
For markets, the significance is in the numbers. Nomura's current market share in Hong Kong ECM is about 2.53%. In a market where total issuance is HK$753.8 billion, even a small increase in market share can translate into meaningful fee revenue. Equity dealmaking is a volume business: when issuance picks up, banks with strong relationships and distribution networks can quickly convert that into profits.
If Nomura adds experienced Hong Kong bankers, it will be better positioned to lead IPOs, follow-ons, and convertible deals. That would put pressure on established players like Morgan Stanley, Goldman Sachs, JPMorgan, UBS, CICC, and CITIC, which have long dominated the Hong Kong ECM league tables.
But there's a trade-off. Staffing costs are steady—bankers' salaries and bonuses don't fluctuate with the market. Underwriting fees, on the other hand, depend on deals actually pricing. If investor caution, especially around AI-linked listings, slows the conversion of the HKEX pipeline into completed transactions, banks that hire into the upswing could feel the downside faster than the upside.
For ordinary investors, this is a reminder that the health of the IPO market is a barometer for broader sentiment. A busy IPO calendar often signals that companies and investors are confident about future growth. But it also means more supply of new shares, which can dilute returns for existing shareholders in the short term.
As Nomura weighs its hiring plans, the key thing to watch is whether the strong pipeline translates into actual listings. If it does, the bank's rebuild could pay off quickly. If not, it might be a costly bet.
For more on how market dynamics are shifting, see our coverage of Indian shares after Diwali and SoftBank's AI data center loss.
