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Tokyo stock market revamped in hope of attracting foreign investors

21 Comments
By Ayano Shimizu

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21 Comments
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It's the appetite for risk that you just don't see in Japan like you do in the US or other parts of the financial/investing world. People here love their cash and love seeing it sit in a bank collecting almost no interest, it's safe it's easy it's low stress. This is why Japanese stocks in general have no momentum and are rather boring to trade. Yes some good companies to invest in long term but until risk appetite changes here then Japanese stocks will be hard pressed to see a big change from where it's currently at with foreign money. Retail trading has exploded in the US over the past 3-5 years and with that it increases trading volume on the daily, where there is volume there is money to be made, regardless of price going up or down.

3 ( +6 / -3 )

re looking more for companies that create innovations to stand out among global competitors than for improving market availability.

Companies that create innovations in Japan? That would be nice to see, especially in renewable energy fields, also in conservation and waste management, plus finding methods to reduce pollution.

9 ( +11 / -2 )

Low returns and a falling yen are not all that appetizing I'm afraid. No thanks. Good place to holiday and send money though at the moment.

1 ( +5 / -4 )

Japanese companies need to release more press releases in english to attract foreign investors

9 ( +11 / -2 )

Japan is attractive to investors, but could be so much more so.

It is every aspect of the market and economy that need to come together to get the sort of interest and activity that Japan is seeking. Governance, rule of law, innovation, tax structure, cost of doing business, workforce etc. all come into play.

This seems to be an acknowledgment of one part of the matter and hopefully a move in the right direction. Sadly it is still all too bureaucratic, slow… and worst of all opaque.

6 ( +8 / -2 )

Interesting? Not at all, actually very dangerous as Japan imminent collapse is approaching.

I would rather give my money to charity than invest in Japanese stock market.

-1 ( +12 / -13 )

The thing is, I need something good to invest in ?

-4 ( +6 / -10 )

Japanese stocks will only become interesting for me after the government gets its act together and implements sweeping reforms of the economy.

I could die first.

-1 ( +11 / -12 )

It depends a lot on what you are looking for from your investments, if you are trading then high share growth is what you need, if you are investing for income then steady growth and a large free cash flow (provided it translates in to solid dividend payments) are your target. If you are a day trader, volatility is your friend (if you judge it right).

Japan has a number of well established firms in sectors that should be cash generative but unfortunately they are opaque and their dividend records are abysmal. This is an area that needs changing, tighter requirements from the stock market would help as would regulation. Japanese companies make little concession to the actual owners of the company, the shareholders and are run by and for the management. So no surprise Japanese shares and stock markets lag the rest of the developed world and foreign investors (my self included) can’t see a compelling reason to invest.

4 ( +9 / -5 )

Prime, Standard and Growth wont attract, Retailers, DIIs, FIIs, but a 5% tax cut would definitely. Instead PM first day was giving wrong signals to FIIs and market in general, by stakeholder capitalism statements. pathetic...

-5 ( +1 / -6 )

I don’t know ..... investors might be interested if they had a nice mascot and lots of cartoons on the annual reports. Will companies have a theme song? Serious foreign investors have expectations....

-5 ( +5 / -10 )

One thing that companies can do to attract new investors (and retain old ones) is to pay out dividends in the same fiscal quarter as the record date.

1 ( +2 / -1 )

Crappy stock market and dying yen aside, they keep uttering this buzzword, new international financial center in Asia. Never going to happen under this tax system. Both personal and business taxes are way too high to become any sort of financial hub. Sure a lot of those people and businesses may well leave Hong Kong but they aren't coming here. Most will end up in Singapore, maybe some in Bangkok too, heard they are looking to do the same. Can't imagine Thailand's tax system could be worse than ours.

0 ( +6 / -6 )

Investors need transparency. Unfortunately I doubt these companies want others to know what is going on behind there closed doors. When foreign companies come along to buy out the remnants it will be all too late.

-3 ( +4 / -7 )

Japan definitely has some investments that could be viewed as attractive for their stability, but that's about it.

Unfortunately, companies and regulators have acted against the interests of foreign investors on numerous occasions. We've had situations where companies have colluded with the JFTC to prevent overseas investors from gaining a controlling stake just because they don't want foreigners controlling a Japanese company. (Bear in mind that Japanese companies have no compunctions about acquiring foreign firms.) This and the numerous incidents of coverups and false reporting (Kobe Steel, Takata, Nissan, Mitsubishi, Suzuki etc..) make for a very unattractive investment market. Investors might be willing to take on the risk if there was potential for high growth like in other markets, but it's simply not to be found in Japan.

0 ( +5 / -5 )

Japanese stocks will only become interesting for me after the government gets its act together and implements sweeping reforms of the economy.

I could die first.

It's not just economy that needs sweeping reforms. Japan's primitive, fit for nothing, so called justice system needs reforming. I personally would never invest in a Japanese company until this is done. I won't hold my breath.

-3 ( +4 / -7 )

We now live in a world where people have to look beyond just the company name, to things like how they treat the staff, how many females are in senior management positions, its family friendly polices, dispute resolution, equality of opportunity no matter colour or creed, to name a few. On almost every point, Japanese companies fail by a disturbingly high degree. Additionally, amongst the G7 Japan is the least welcoming, and despises foreigners in every form.

The ridiculousness of border control is beyond comprehension and fears abound that altough it is ajar now, it can be firmly slammed shut at a moments notice. Japan is now reaping what it has sown over the last few years, and still it dithers. Leadership and strategy is non existent, management is knee jerk depending on populist thinking, I fail to understand why, without an effective opposition this ruling party could have introduced radical reform and change for two decades without any real possibility of being deselected. Old men are risk averse, old men do not like reform, it's time for a younger generation of both women and men to change the country before it sinks.

In summary, what is attractive about Japan that would encourage a foreign investor?

-4 ( +3 / -7 )

One-third of the Boeing 787 is made by Japan and in Japan. This country is a major supplier of many components, machine tools, etc. essential to global tech and industry, although much of this activity is unknown to the layman.

-1 ( +2 / -3 )

Retail trading has exploded in the US over the past 3-5 years and with that it increases trading volume on the daily, where there is volume there is money to be made, regardless of price going up or down.

It's only exploded because retail investors realized savings accounts are worthless and trading apps made it easily accessible.

0 ( +1 / -1 )

Not until everything is in ENGLISH. TILL then, u all can keep your shares to yourselves. Just use your common sense. Who wants to buy anything that they cannot totally understand ???.

-1 ( +0 / -1 )

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