Quantitative Monographs "Japan: latest cross-shareholding factors and..."

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Quantitative Monographs "Japan: latest cross-shareholding factors and..."

Global Research

3 July 2026ab

Quantitative Monographs Equities

JapanJapan: latest cross-shareholding factors and

unwind prediction signals; data available via API Quantitative

Will Stephens

Analyst

will.stephens@ubs.com

Net unwind of ¥1.95trn in cross-shareholdings observed in June +852-3712 3892

Cross-shareholding unwinds have been the prevailing trend in Japan, supported by Jia Li Mok, CFA

renewed policy focus from the JPX and FSA. June saw gross unwinds of ¥2.8trn, partially Analyst

offset by ¥843bn of build-ups (adjusted for privatisation situations). This translates into a jia-li.mok@ubs.com

net unwind of ¥1.95trn (~US$12bn) for the month. Cross-holdings in Japan remain +65-6495 5772

significant, with around 8.3% of total market cap, or ¥116.8trn, held by other listed Jessica SU

Japanese companies. We believe the ongoing regulatory and investor pressure will Analyst

continue to drive changes and create opportunities around unwinding events. jessica-hong.su@ubs.com

+852-3712 2059

A suite of cross-shareholding factors to navigate this shifting backdrop Paul Winter

Japan-specific cross-holding signals can help investors take advantage of risk factors Analyst

associated with intercompany positions. Our Holding Percentage factor—the value of paul-j.winter@ubs.com

holdings relative to holder's market cap—serves as an attractive alternative to Value. We +61-2-9324 2080

also find interesting alpha opportunities in the Change in Holding Percentage factor, Cathy Fang, PhD

while the Holding Shares Change factor serves as an effective signal to capitalise on Analyst

cross-holding unwinds. For more info, see our report on Japan cross-shareholding S1460518100001

factors. cathy.fang@ubs.com