Japan's capital markets - where next?
Join my discussion with Oki Matsumoto, Asumi Ota & Andrew McDermott
Japan’s capital markets have evolved dramatically since the “Financial Big Bang” was announced 20-years ago, in November 1996. The official goal then was to become “free, fair and global”. With “mochiai” cross-shareholdings down from almost 50% to now less than 10%; global investors ownership up from less than 8% to now almost 35% of total market capitalization; and, up from nothing, a stunning 7.1% of all listed companies under attack from a takeover bid (in 2025) it is impossible to argue Japan Inc. has not fundamentally changed. Japan has moved from “insider capitalism” to “open access capitalism.”
Where will Japan capital markets go from here? Has there been too much openness? Is Japan at risk from excessive “financialization”? Has the investor base changed for better or for worse, and are minority shareholder’s rights protected? Do Japan’s capital markets still allow for “best in class” innovation and long-term stable funding? What policies should PM Takaichi advance to ensure Japan’s capital markets will serve best the demands of the aging society at home and the new geoeconomic realities abroad?
Hosted by Asia Society Japan on May 21, join me for a panel discussion with longstanding practitioners, Oki Matsumoto—founder of Japan’s first retail-investor activist fund and the Tokyo University Center for Capital Markets; Andrew McDermott—over two decades of Japan investment experience, having led over 60 activist campaigns in Japan and the world; and Asumi Ota—partner of Japan-focused venture capital fund D4V.
To view the recording please click: JapanCapital Markets -where next?
or on the YouTube channel here
At the start, I give a 10 minute overview on how Japan’s capital markets have changed over the past decades.
The charts I presented follow below :
the "who owns japan" chart is interesting. I thought that global investors had much more in dec 1989. Retails has been stable but Japanese investors have been accumulating huge profits in Yen for many years now due to falling Yen and rising value elsewhere. Any incentive for them to bring back home?