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Top representatives from the securities industry and capital markets in the US and Japan gathered at the SIFMA Conference Center in New York yesterday. They discussed and examined the achievements so far of “Abenomics”, the Japanese government’s economic strategy to put the country on a sustainable growth path, as well as the challenges that lie ahead due to demographic changes. The Japan Securities Summit is a unique event co-organized by the Japan Securities Dealers Association (JSDA) and the Securities Industry and Financial Markets Association (SIFMA).
At the beginning of the event, Mr. Kazutoshi Inano, Chairman and CEO of the JSDA remarked: “Indeed, both Japan’s economy and the world economy have reached a crucial juncture in shaping the future. The securities market is expected to play an important role in tackling this difficult but unavoidable policy agenda by making full use of the potential and vitality of this country through the efficient allocation of capital and resources. In this sense, the successive introduction of the “stewardship code” and “corporate governance code” along with a number of initiatives prompting listed companies to raise their corporate value are important and are encouraging steps to enhance the integrity and efficiency of the market”. He also expressed his expectations for more constructive collaboration from both countries.
During the sessions, it was recognized that government fiscal and monetary policies have achieved certain results in breaking out from deflation and reviving the economy. At the same time, there was a broad consensus that steady implementation of structural reform will be essential to overcome the difficulties caused by the ageing population and to move the economy onto a more vigorous growth path. Keynote speaker, Mr. Nobuchika Mori, Commissioner of the Financial Service Agency (FSA), emphasized that “The global economy has been plagued with deflationary tendencies and the market has been with increased volatility. We need to meet many challenges. However, if we are cautious and proactive enough, such environment may also provide great opportunities. I believe Japanese companies have significant upside in their corporate value”. Senior representatives at the panel on Japanese economy provided their insight into fiscal consolidation including the further hike in consumption tax and public debt management, monetary policy measures as well as growth strategy.
Measures and initiatives to raise the capital market’s efficiency and integrity were also discussed. Amongst others, Mr. Akira Kiyota, the JPX Group CEO, briefed the audience on the efforts to enhance the corporate value of listed companies by referring to a stock price index reflecting improvements in ROE, and the measures to ensure that the JPX market stays robust and functional. The panel on market infrastructure discussed the progress of and future expectations for strategic measures to revitalize Japanese capital markets, pointing out the steady spread of Japan’s Corporate Governance Code and the potential of Tokyo as a global financial center.
The speakers at the conference agreed that, despite the difficult circumstances, measures taken by the authorities would provide middle to long term momentum for the growth of Japan’s economy including financial and capital markets.
Commenting at the event, Mr. Kenneth E. Bentsen, Jr., President and CEO of SIFMA noted: “I want to make a special mention of the thoughtfulness Mori-san has brought to policy discussions among global financial regulators. He is making efforts to refocus the need to provide a balance between the need for stability and to promote economic growth. It’s a conversation that is long overdue.” Mr. Bentsen also commented on the strong ongoing political and trade relationship between the U.S. and Japan and noted “I hope there is scope for the two jurisdictions to learn lessons from one another’s experience with financial reform over recent years. The longstanding economic and strategic relationship between our two countries remains essential to long term global stability and prosperity”.
More details of the Japan Securities Summit can be found on SIFMA’s website at http://www.sifma.org.
