Tokyo Stock Exchange Listings Decrease as Focus Shifts to Quality
On December 16, 2024, Japan’s chipmaker Kioxia has set its IPO price at a market value of $5.2 billion. This move is expected to have a significant impact on the equities market in Japan. Japan Inc. is also gearing up for a year-end rally with big dividend payouts in the cards.
Meanwhile, U.S. private credit lenders are increasingly targeting the Japanese market, indicating a growing interest in the region. The landscape of Japanese M&A activities is evolving under the blueprint set by METI, ushering in a new era for these transactions.
The Tokyo Stock Exchange recently experienced a slowdown in trading on the first day of extended hours, highlighting some challenges in the market. This comes on the heels of insider trading allegations that dealt a blow to investor trust in the exchange.
Despite these challenges, the Tokyo Stock Exchange is actively seeking Asian unicorns to revive foreign listings, showing a commitment to expanding its offerings. There is a consensus that Japan’s corporate governance reform is still in its early stages, with the TSE chief emphasizing that there is more work to be done in this area.
Japan Inc. has set a target of adding 2,500 more female directors to meet national diversity goals. Additionally, Japanese retail investors are increasingly rallying around activism, showcasing a shift in investor behavior.
Japan’s stock buybacks have reached $57 billion, indicating a strong trend towards companies repurchasing their own shares. Furthermore, Japan saw a record high of $9.7 billion in management buyouts in fiscal 2023, showcasing a robust M&A environment in the country.
On the global front, the bond rally in China has intensified following a shift in monetary policy tone. South Korea, on the other hand, continues to be affected by a political fiasco that is weighing on stocks and currency markets. Overall, the intersection of AI and finance is driving global corporate profits up for a second consecutive quarter.
In conclusion, the finance and securities landscape in Japan and globally is evolving rapidly, with various factors at play shaping the market dynamics. Investors and stakeholders are closely watching these developments to navigate the ever-changing financial environment effectively.
