Japan has a well-functioning securities market embracing deep liquidity and diversity. The huge pool of financial assets held by Japanese individuals is seeking tools and opportunities for investment and is expected to provide sufficient long-term funds for promising businesses through financial and securities industries. Many leading enterprises that maintain cutting-edge technologies and are competitive in the international market exist as fund-raisers and underpin the market. In addition, the Japanese market has geographic proximity to and close linkage with growing Asia, which means that Japan and its businesses are in a position to be a big part of Asia’s growth for the foreseeable future.

On the other hand, Japan faces significant challenges including rapid population aging. Amid these difficulties and challenges, the public debt outstanding has reached an extraordinary level. To revive the economy while also achieving fiscal consolidation, the securities market must play a key role in drawing out the vigor of the private sector through efficient allocation of available funds and resources. Only an active and sound securities market can fulfill this challenging task.

With that in mind, the JSDA is now tackling revitalization of the Japanese securities market as its most urgent priority. The Association is running a series of panel meetings composed of knowledgeable experts to reaffirm the significance and potential of the Japanese market and industries and to offer information about the importance of asset management as well as stock investment. Topics discussed at past meetings are as follows:

1st Panel Meeting
Wednesday, December 19, 2012, Tokyo

Japanese enterprises with potential to improve their earnings

Experts explored measures and incentives to increase profitability in Japanese industries including business model change, new funding conduits for restructuring, stronger involvement of shareholders in business decision making, and revamping of industry classification.

IR strategies which lead to market activation

Experts deliberated more effective strategies for IR activities to increase corporate value, serving the needs and interest of individual investors who play key roles in market activation.

2nd Panel Meeting
Friday, January 25, 2013, Tokyo

Strategies to broaden and diversify the investor base

Experts explored measures to expand the investor base, including fostering financial literacy among inexperienced investors and pension plan members, encouraging investment through introduction of more various class stocks and facilitating proper understanding of risk and return.

Globally competitive market infrastructure

Experts discussed the international competitiveness of the Japanese market infrastructure examining its governance level, liquidity, and speed of trade execution. They also exchanged views on the impact of high frequency trading and tactics to tap into Asia’s growth.