Japan equity memo: Growing momentum to use stock splits to broaden investor base

Research evidence excerpt

Japan equity memo: Growing momentum to use stock splits to broaden investor base

by this summer a “new financial strategy” that includes robust measures to drive the Japanese economy.

Support the strengthening of banks’ financing and growth-support functions, including their capacity to respond to

larger-scale M&A and new business needs, in order to financially support growth investment in the 17 strategic

sectors as well as business restructuring and reorganization by Japanese companies.

In the Standard Market, only around half of listed companies have responded to the Tokyo Stock Exchange’s request

for disclosure; improving the disclosure rate remains a key issue.

Shift startup exit strategies away from excessive reliance on IPOs toward the revitalization of M&A and secondary

Tokyo Stock Exchange Reform

transactions.

In cooperation with the Tokyo Stock Exchange and others, support promising overseas startups from their entry into

Japan through to listing on the TSE.

Promote efforts toward the alternative investment ceiling of 5% of total assets. Other public asset owners should also

GPIF

upgrade, evaluate, and review their investment practices.

Consider further lowering investment units, including stock splits and the treatment of odd-lot shares.

Expanding Individual Investors’ Asset Formation and Promote and entrench NISA, improve iDeCo and corporate defined contribution pension plans, and review the

product features of retail Japanese government bonds. Improving Market Accessibility

Establish a framework for investment trusts specializing in private assets, while paying due attention to customer

protection.

Measures Against False Statements and Accounting Enhance the content of management certifications under Article 24-4-2 of the Financial Instruments and Exchange