JPX has published "Proposals from the JPX Financial and Capital Market Workshop: Toward Creating an Attractive Capital Market"

December.17.2013 update
JPX

Japan Exchange Group, Inc. (JPX) has published the "Proposals from the JPX Financial and Capital Market Workshop: Toward Creating an Attractive Capital Market".

In its medium-term management plan formulated in March 2013, JPX laid out its future vision of becoming "the most preferred exchange in the Asian region". However, the Tokyo Market’s competitiveness has been diminished as a result of Hong Kong/Singapore solidifying their positions as global financial centers and accelerated financial system reform in China.

Though market conditions continue to appear favorable due to the effects of Abenomics, there still are a number of fundamental issues in the Japanese financial and capital market which remain to be solved. JPX held a discussion group with financial experts in August and September to look beyond exchange measures and discuss how to improve the appeal of the Japanese exchange market from a broad perspective. We have summarized policy recommendations based on these discussions.

Specifically, the workshop identified "Improving the Japanese Stock Market's Appeal" and "Harmonized Growth with Asian Markets" as two important themes. Based on analysis of each issue from JPX's viewpoint, the workshop prepared proposals for the required measures.

- In order to improve the Japanese stock market's appeal by enhancing the attractiveness of corporations, the workshop proposed measures such as establishing systems to facilitate the essential oversight functions of outside directors and promoting communications between corporations and institutional investors via a Japanese version of the stewardship code currently under discussion.

- Also, in order to offer financial support for stronger cooperation between Japan and the Asian region as our real economies are increasingly connected, the workshop indicated the necessity of providing funds via the PRO-BOND Market and listed infrastructure market, as well as promoting a national strategy to make Tokyo an international financial center. Views on these issues are in line with those expressed in the report from the "Panel for Vitalizing Financial and Capital Markets" released the previous week.

We hope these proposals will serve to invigorate the Japanese financial and capital market and contribute to further growth of the Japanese economy. JPX will continue promoting the research of issues related to the future development of the Japanese capital market, and pro-actively offer information and proposals toward such goals.

 

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