Insights into Japan capital market initiatives

How TSE reform and generational change are reinventing Japan's economy & financial markets

Last week, I helped organize a seminar on the current dynamics of Japan’s economy in general, capital market reform in particular. It was a collaborative event for both the Asia Society & Japan Society in New York (1).

Please find below the link to the video of the public session.

We start with a brief 10 minute overview of my summary thoughts on “what has changed & what forces are now driving Japan’s future outlook”. Then we move to a presentation and discussion by two of the key persons behind the recent initiatives launched by the Tokyo Stock Exchange (TSE) designed to improve capital market efficiency and corporate governance:

Oki Matsumoto is the founder & Executive Chairman of Monex Group and a key member of the TSE’s special committee on capital markets that orchestrated the push for pressuring CEOs to raise their companies price-to-book value above 1.

Oki makes a passionate case that “this time it is different” because of the ambitions of the new generation of leaders: Japan is now being led by leaders who are free from both the “Showa legacy” (when Japan was Number 1, and leaders were told they could not do anything wrong….) and the “post-bubble trauma” (when Japan was in crisis, and leaders were told they could not do anything right….). Relatively unencumbered by historic constraints and complexes, Japan’s new generation of leaders is very much focused on creating their own positive legacy. They know Japan “can do better”, and they will make sure it does.

Then we have TSE Director & Senior Executive Officer Katsumi Ao who presents the motivation and rationale behind the TSE new capital efficiency guidelines for listed companies. Make no mistake: what the TSE is doing is unprecedented in history: in a way, Japan’s national stock exchange has now become an activist and engaged agent for corporate change and improved capital stewardship. Ao-san discusses with Oki both the success so far, and the roadmap ahead.

I trust you will enjoy the video of this session. As always, comments welcome. Many cheers ;-j

watch video here :

Video of NY Japan Seminar Sept 13, 2023

(1) we hosted a similar seminar in San Francisco Sept 15. For both events the public session was followed by a private panel discussion amongst senior investment managers.