Japan Exchange Group, Inc. (JPX) announced that JPX has published the "Proposals from the JPX Financial and Capital Market Workshop: Toward Creating an Attractive Capital Market".
JPX was launched in January 2013 with the future vision of becoming "the most preferred exchange in the Asian region". However, Tokyo Market relatively loses its international competitiveness, as Hong Kong/Singapore's development, the rise of Asian countries, and accelerated financial system reform in China.
The market conditions looks sustaining it's strong economic performance thanks to the effect of Abenomics, but as Japanese financial and capital markets, there still remains many issues to be resolved. JPX held a discussion group with financial experts in August and September to discuss how to improve the appeal of the Japanese exchange market in terms of not just our own policy. Based on these discussions, we summarizes policy recommendations.
Specifically, the workshop identified "Improving the Japanese Stock Market's Appeal" and "Growing together with Asian Markets" as two important themes. Based on analysis on each issue from JPX's viewpoints, proposals for the required measures were devised.
- In order to improve the Japanese stock market's appeal via enhancement of 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 growing together with Asian markets and offer financial support for stronger cooperation between Japan and the Asian region, the workshop proposes contributing to capital needs 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 by the "Panel for Vitalizing Financial and Capital Markets".
We hope these proposals will serve to invigorate the Japanese financial and capital markets 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.
Policy Recommendations from JPX Financial and Capital Markets Workshop