demand (c,i,g,ex) gdp supply (labor, capital, productivity) · 2019-05-29 · demand (c,i,g,ex)...

Demand (C,I,G,EX) → GDP ← Supply (labor, capital, productivity)

Lack of demand was behind the prolonged deflation in Japan.

Quantitative expansion and inflation targeting was effective to stop deflation.

GDP, labor market condition, and corporate profit showed dramatic recovery.

Expanding Money Balance

0

10

20

30

40

50

60

70

80

Monetary Base

US Euro Area UK Japan

（％、GDP ratio）

2

3

日本銀行による総括的検証

2

デフレ脱却、経済再生に向けた政府・日本銀行との連携

○デフレ脱却、経済再生の実現のためには、働き方改革、規制・制度改革、成長戦略、財政政策により潜在成長力を引き上げていくべき。これにより、自然利子率（実体経済の実力で決まる金利）が上昇、金融政策の効果がより一層発揮（自然利子率と実質金利の差が拡大、金融環境がより緩和的に。）。

○今般の「総括的な検証」は、以下の点を総合的に分析し、日本銀行の考えを明らかにしたもの。市場との対話を円滑に進めていく上で、有意義。

・量的・質的金融緩和の導入は、財政政策等政府の取組

みと相まって、実体経済の好転に大きく寄与。日本経済

をデフレではない状況に転換、貸出金利や社債・ＣＰ金

利が低下。

・他方、２％の「物価安定の目標」を達成できていないの

も事実。

・総括的な検証において、

過去の物価に引きずられ予想物価上昇率が

十分に引き上げられなかったこと、

マイナス金利政策については金融機関の収益力に

影響（副作用）が生じうる可能性があること

等が明らかとなった。

図１消費者物価指数

-0.6

0.5

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7

2011 12 13 14 15 16

（消費者物価指数、％）

（年月）

消費者物価指数（生鮮・エネルギーを除く総合）（消費税の影響除き）の前年比（３カ月移動平均）

CPI inflation rate excludingenergy prices and fresh foods

Inflation rate

Three month moving average

Shifting Trend of Inflation Rate

534.1 536.0 545.1 548.5

0

100

200

300

400

500

600

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

(CY)

Nominal GDP, Japan, 1990-2018: It took about 20 years to recover

(Trillion Yen)

(Source) Cabinet Office,Government of Japan, Quarterly Estimates of GDP - Release Archive - 2018 > Oct.-Dec. 2018 (The 1st preliminary),1990-1993:National Accounts of 2009

5

このレポートの関連カテゴリこのレポートの関連カテゴリ W eek ly　エコノミスト・レター日本経済

経済研究部　経済調査室長

斎藤太郎斎藤太郎 (さいとうたろう )

研究・専門分野

日本経済、雇用日本経済、雇用

レポートについてお問い合わせレポートについてお問い合わせ

0 3 -3 5 1 2 -1 8 3 60 3 -3 5 1 2 -1 8 3 6

■目次

●ＧＤＰ統計の改定で変わった日本経済の姿

　　・ 2 0 1 5年度の名目GDPが3 2兆円の上方改定

　　・新基準の名目GDPは直近がピークに

　　・名目GDP6 0 0兆円が近づく

　　・直近3年間の実質GDP成長率が大幅上方改定

　　・潜在成長率は1％近くまで上昇

　　・低下する労働分配率

　　・家計の所得分配率が過去最低水準まで低下

　　・家計の所得分配率を高めることが重要

【次ページ】ＧＤＰ統計の改定で変わった日本経済の姿【次ページ】ＧＤＰ統計の改定で変わった日本経済の姿

11 2 3 4 »

Tweet

全文ダウンロード（ PD F）全文ダウンロード（ PD F）

日本経済日本経済・・日本経済日本経済などの記事に関心のあるあなたへなどの記事に関心のあるあなたへ

64

0 0

revised data

original data

Nominal GDP of Japan; revised data

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2010 2011 2012 2013 2014 2015 2016 2017 2018

(Year)

The Ratio of Job Offers to Applicants, Japan, 2010-2018

(Source) https://www.e-stat.go.jp/Note: Seasonally adjusted. Including part-timer , excluding students.

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2010 2011 2012 2013 2014 2015 2016 2017 2018

Unemployment Rate, Japan, 2010-2018(%)

(Year)

(Source)http://www.stat.go.jp/data/roudou/sokuhou/tsuki/

59.6

69.4

70.7

67.9

56.0

58.0

60.0

62.0

64.0

66.0

68.0

70.0

72.0

2000 2002 2004 2006 2008 2010 2012 2014 2016

(%)

(Year)

Female Labor Force Participation Rate, 2000-2017

Japan United States

(Source) OECD. Stat, LFS by sex and age - indicators

Note: Age 15-64

0

10

20

30

40

50

60

70

80

90

2010 2011 2012 2013 2014 2015 2016 2017

(Trillion yen)

(FY)

Recurring Profits at All Industries, Japan, 2010-2017

(Source)https://www.e-stat.go.jp/dbview?sid=0003060791

Note: Excluding Finance and Insurance. Figure : year end

Supply side is not caching up.

Total Factor Productivity is not rising much.

Demand stimulation was within government (including central bank) reach.

Supply side is not within government reach.

Japanese economy needs more dynamic adjustment in labor market.

Accumulating savings in the pocket of the corporate sector.

-1.50

-1.00

-0.50

0.00

0.50

1.00

1.50

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Potential Growth Rate, Japan, 2008-2018

Hours worked Total factor productivity Capital stock Number of employed Potential growth rate

(FY)

(y/y % chg.)

(Source)https://www.boj.or.jp/research/research_data/gap/index.htm/Note: The potential growh rate id estimated by the Research and Statistics Department , Bank of Japan.

-0.9

0.5

1.9

4.7

-8

-6

-4

-2

0

2

4

6

8

10

12

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

(%)

(Year)

Saving Investment Balance (GDP ratio)Corporate Sector, 1990-2017

UK USA Canada Gemany Japan

(Source)OECD (2019), Net lending/borrowing by sector (indicator). doi: 10.1787/693a515e-en (Accessed on 18 February 2019)

0

50

100

150

200

250

300

350

400

450

500

2010 2011 2012 2013 2014 2015 2016 2017

Retained Earnings at All Industries, Japan, 2010-2017(Trillion yen)

(FY)(Source)https://www.e-stat.go.jp/dbview?sid=0003060791

Note: Excluding Finance and Insurance. Figure : year end

Limit of quantitative monetary expansion

• It is difficult to achieve 2 % inflation rate• Credibility of inflation targetting

• Bazooka was effective to change people’s mindset once or twice but no more.

• Very flat yield curve generates difficult business conditions for the banking sector

Optimal speed of fiscal consolidation?

• Primary fiscal balance was chosen as a target for fiscal consolidation• About 0.5 % point reduction of GDP of primary balance deficit of GDP

• Low interest rate makes debt service very low• Will interest rate continue to be low?

• Debt/GDP ratio is expected to start decreasing soon but very slowly

• Mild inflation (with primary balance surplus) is necessary for reducing debt/GDP ratio

• Aging population will impose further burden on fiscal consolidation

-9.0

-8.0

-7.0

-6.0

-5.0

-4.0

-3.0

-2.0

-1.0

0.0

2010 2011 2012 2013 2014 2015 2016 2017 2018

(%)

(Year)

General Government Net Lending (GDP ratio), Japan, 2010-2108

(Source) OECD.Stat, Economic Outlook No 104 - November 2018.

-9.0

-8.0

-7.0

-6.0

-5.0

-4.0

-3.0

-2.0

-1.0

0.0

2010 2011 2012 2013 2014 2015 2016 2017 2018

(%)

(Year)

General Government Primary Balance (GDP ratio), Japan, 2010-2018

(Source) OECD.Stat, Economic Outlook No 104 - November 2018.

March 2019

Hiroshi Ohata

Japanese Fiscal Policy and

Public Debt Management

Virtuous cycle

Investment

Wage

Corporate profit

Consumption

Productivity

Enhancing

potential

growth

Supply System

Innovation

Providing grounds to

drive innovation and

to realize ‘Society 5.0’

Human Resources

Development

Revolution

Developing human

resources to create

an inclusive society

Embracing diversity

Overcoming deflation

• The BOJ, together with the government, aims for overcoming deflation as

early as possible. (The BOJ aims at achieving price stability target at 2%.)

Sustainable growth

• Achieving 600 trillion yen

economy

Integrated Economic

and Fiscal Reform

Aiming to achieve a

primary fiscal surplus

by FY2025, and a

stable reduction in the

debt-to-GDP ratio.

Securing

sustainability of social

security system

Economy: Virtuous cycle achieving economic revitalization

Eliminating

concerns

over the

future

Structural reform Fiscal consolidation

1

By FY2025

At the same

time

Achieve a primary surplus of the national and local governments

Fiscal consolidation target

Mechanisms to integrate fiscal consolidation target and annual budget

formulation for FY2019 to FY2021

Measures to realize the plan

Social security

Expenditure

The progress will be reviewed at the midpoint of the new Plan, or FY2021; thereafter the outcome

will be reflected in the subsequent reforms of expenditures and revenues towards the achievement of a

primary surplus by FY2025.

【Benchmarks for managing the progress】・Primary deficit to GDP ratio：around 1.5% ・Public debt to GDP ratio：in the low 180%-range

・Fiscal deficit to GDP ratio：at 3% or below

Non-Social security

Expenditure

Contain the increase within the one corresponding to the increase due to population

aging

Expenditures of the

local government

Steadily reduce the public debt to GDP ratio

Continue the efforts of expenditure reforms thus far in the Abe Cabinet

The total amount of the general revenue shall be maintained substantially at the same

level as in the FY2018 Fiscal Plan of Local Governments, and not below

Main points of the New Plan to Advance Economic and Fiscal Revitalization

(Cabinet Decision on 15 June 2018)

2

Highlights of the Draft FY2019 Budget (1/2)

Shifting toward “Social security that accommodates the needs of all generations”, implementfree early childhood education and enhancement of social security system funded by therevenue raised by the consumption tax hike

Public spending (PS) : +\811.0bn (National government spending (NGS) : +\715.7bn*1 )

• Free Early Childhood Education and Childcare [Starting from Oct.2019] …… PS : +\388.2bn (NGS : +\388.2bn*2)

• Improvement of working condition for long-term care workers [Starting from Oct.2019] ……………… PS : +\ 42.1bn(NGS : +\ 21.3bn)

• Provision of benefits for supporting low-income pensioners ……………… PS : +\185.9bn (NGS : +\185.9bn)

• Further burden reduction of long-term care insurance contributions for the low-income elderly …… PS : +\ 65.4bn(NGS : +\ 32.7bn), etc.

*1,2 These amounts include temporary grants for children and child-rearing (assumed name) amount to \234.9bn along with making whole expenses for the first year of free early childhood education and childcare to be national spending. The amount of increase in social security expenditure for enhancement of social security system excluding the grants is +\480.8bn for public spending, +\153.2bn for national government spending.

Mobilize a range of measures to level the impact on the economy of the consumption tax hike“Temporal and Special Measures” : \2,028.0bn (NGS)

• Point Rewards to Consumers via Small and Medium-sized Retail Businesses, etc. ………………… \ 279.8bn

• Vouchers with premiums for the Low-income or Child-rearing Households ………………………… \ 172.3bn

• Budgetary Measures for Housing Purchaser - Benefits for Housing Purchase “Sumai Kyu-fu kin” ……. \ 78.5bn- Point Reward System for Promoting Innovative Housing …. \ 130.0bn

• Measures for Disaster Prevention, Disaster Mitigation and Building National Resilience ………… \1,347.5bn, etc.

3

Highlights of the Draft FY2019 Budget (2/2)

《Fiscal Consolidation》

Based on “Three-year Emergency Response Plan for Disaster Prevention, Disaster Mitigation,and Building National Resilience”, reflecting “Emergency Inspection of Critical Infrastructure”,etc., implement 160 urgent measures intensively for 3 years until FY2020.

⇒ Utilize FY2019/FY2020 Temporal and Special Measures (FY2019 : 1,347.5bn*3) and the Second Supplementary Budget for FY2018

*3 National Government Spending. The whole spending, including the Second Supplementary Budget for FY2018, amounts to \2.4tn.

By contrast, the size of the projects for 3 years until FY2020 amounts to approx. \7.0tn.

Under “New Plan to Advance Economic and Fiscal revitalization”, continue efforts for expenditure reforms.

• Social Security Expenditures: achieved the principle of suppressing the increase due to aging population (+\477.4bn)

• Non-social security Expenditures: continue efforts for expenditure reforms (+\33.0bn)

The amount of planned bond issuance has decreased in 7 consecutive years since the start of Abe administration. (FY2018:\33.7tn ⇒ FY2019:\32.7tn [\31.9tn])

Primary balance in the general account has improved. (FY2018: -\10.4tn ⇒ FY2019: -\9.2tn [-\8.4tn])

※ [ ] shows the amount excluding the amount of “Temporal and Special Measures”.

4

Impact of the consumption tax hike

Economic impact of this consumption tax hike is estimated to be approx. \2.0tn, suppressedby mitigating measures such as free early childhood education, etc. New measures, amountingto approx. \2.3tn, are prepared enough to overcome this adverse impact.

Impact of the consumption tax hikeBurden

Increase

Burden

Decrease

Increased Burden due to the consumption tax hike as revenue sources

for national and local governments : +\5.7tn (+\2.87tn per 1%) Approx.

\5.7tnー

Implementation of reduced tax rate ー Approx. \1.1tn

Securement of fiscal resources by revision of tobacco and income tax

last year, etc. Approx.

\0.6tnー

Approx.\5.2tn

Increased

Burden

Free Early Childhood Education, Enhancement of Social Security SystemBenefit

Increase

The implementation of Free Early Childhood Education and Childcare from Oct.1, 2019

Provision of benefits for supporting low-income pensioners, etc.Approx. \2.8tn

The compensation to medical fees for increased consumption tax burden, etc. Approx. \0.4tn

Approx. \3.2tn

Benefit

Increase

New measures to address the consumption tax hike Budget size, etc.

Temporal and Special budget measures (Point Rewards, Vouchers with premiums, Benefits for

Housing Purchase “Sumai Kyu-fu kin”, Point Reward System for Promoting Innovative Housing, and Measures

for Disaster Prevention, Disaster Mitigation and Building National Resilience, etc.)

Approx. \2.0tn(National government

spending)

Tax credit (Expansion of housing loan tax credit, Reduction of tax burden on purchase and possession of

automobiles)

Approx. \0.3tn(Tax reduction)

Mitigate

economic impact

amount to

approx. \2.0tn

Measures

amount to

approx.

\2.3tn

Measures

amount to

approx. \2.3tnenough to

overcome this

adverse impact

(Note) Figures are under careful examination.

5

Measures for the Consumption Tax Hike

Presented by Minister of Economic and Fiscal

Policy in the Council on Economic and Fiscal

Policy (CEFP) on 20 December 2018

Changes from

FY2018(initial)

40-Year 2.4 -30-Year 8.4 -20-Year 10.8 -1.210-Year 25.2 -1.25-Year 22.8 -1.22-Year 24.0 -1.2

TBs (1-year) 21.6 -10-Year

inflation-indexed1.6 -

Liquidity enhancementauction

12.6 -

Total 129.4 -4.8

FY2019

Highlights of FY2019 JGB Issuance Plan

〈Breakdown by Financing Methods〉〈Breakdown by Legal Grounds〉〈Market Issuance Plan by JGB types〉

＝

(trillion yen) (trillion yen) (trillion yen)

※ Non-Price Competitive Auction Ⅱ is an additional issuance for the JGB Market Special Participants after the normal auction.

Additional revenue from issuance at a price above par value is also included.

- Market issuance amount by normal auctions : 129.4 trillion yen

(reduced by 4.8 trillion yen in total)

- Issuance amounts by maturity types will be reduced in each zone of super-long-

term, long-term and short- to medium-term in a well-balanced manner, based on

the market needs.

- Issuance through liquidity enhancement auctions (additional issuance of off-the-

run JGBs based on market demand) will remain at the current amount, considering

the market circumstances.

6

Changes from

FY2018(initial)

Newly-issued bonds

(Construction bonds and

special deficit-financing bonds)

Reconstruction bonds 0.9 -0.0

FILP bonds 12.0 -

Refunding bonds 103.1 -0.1

Total 148.7 -1.2

FY2019

32.7 -1.0

Changes fromFY2018(initial)

141.8 -2.3

4.7 1.4

2.2 -0.3

148.7 -1.2

FY2019

BOJ rollover

JGB market issuance

Market issuance bynormal auctions -4.8

Non-price competitiveauction Ⅱ and others 12.4 2.5

Sales for households

129.4

Total

Could Japan Achieve Super Smart Society ?

Japan Securities Summit4 March 2019

Naoko NemotoFinancial EconomistAsian Development Bank Institute

Outlook for Japan’s Economy: Solid capital investment and labor income will sustain growth

2 Source:ADB Asian Development Outlook

Supplement Dec 2018

60

70

80

90

100

110

0

5

10

15

20

25

30

Corporate Profits and Investments

Pretax profit (Trillion yen, left axis)

Capital investment (Trillion yen, right axis)

Source: Cabinet Office Quarterly GDP Estimates

2018, Ministry of Finance Financial Statements

Statistics of Corporations by Industry 2018

Productivity Improvement Key AmidDeclining Population

3Source: Ministry of Internal Affairs and Communications Labor Force Survey 2019

62

63

64

65

66

67

68

2.0

3.0

4.0

5.0

6.0

(Mil. ppl.)(%)Unemployment Rate and the Number of Employed

Unemployment rate Employed (Seasonally adjusted)

Public-Private Cooperation to Advance “Future Growth Plan and Society 5.0”

4

“ Society 5.0” is Aligned with Sustainable Development Goals( SDGs)

5

Source: Federation of Economic Organization

• Japan Future Strategy June 2018 Cabinet Office

August 2018, Ministry of

Economy, Trade and Industry

December 2018, METI

January 2019 Prime Minister

Shinzo Abe

• New era of automobiles

• 80% reduction of GHG

emissions per vehicle

• Published guidance paper with

Task Force on Climate-

Related Financial Disclosure

• Financial Services Agency

supports disclosure

• Aim to reduce hydrogen

production costs by at least

90% by 2050

ESG Investment to Boost Investment Chain, Japan’s Growth Strategy

6

Corporate

Improvement of Corporate Value

Boost Japan’s Potential Growth

Investors

Asset Management Co.

• GPIF*

• Pension fund

• Insurance

• Foreign Investors

• Individuals

Stewardship

Code

Corporate

Governance

Code

High

Returns

Government Pension Investment Fund (GPIF) has integrated ESG factors into the investment process via 1) investment principles, 2)

stewardship principles, and 3) proxy voting principles. GPIF also solicitated ESG indices(e.g. FTSE Blossom Japan Index, S&P/JPX

Carbon Efficient Index Series, MSCI Japan Empowering Women index)

HR Development and Diversity: Smart Society Pillar

7

44

April 2016

• Act on promotion on women’s participation and advancement in the workplace

• Set a goal of increasing women in leadership positions to 30% by 2020

April 2019

• Reform of labor law

• Focus on work style reform (i.e. reduction of overtime work)

April 2019

• Reform of immigration and refugee recognition law to expand foreign workers

• Set up new status of residence

Non-Routine

Routine

Manual Cognitive

Source: Mitsubishi Research Institute (June, 2018)

Share of Labor Force by Type of Work

March 4, 2019

Makoto Sonoda

Director for International Capital Market RegulationDirector for International Accounting

Member of G20 Office

Financial Services Agency

Government of Japan

Japan’s developmentsto attract people and industry

*Any views expressed in this presentation are those of the presenter and are not necessarily the official views of the FSA.

1

Main Topics

Corporate Governance Reform in Japan-highest profile issue under Abenomics-

FSA’s recent developments to attract investors

G20 priorities under Japanese presidency

2

Corporate Governance Reform in Japan-highest profile issue under Abenomics-

3

Current Status of Abenomics

(Source) Prime Minister of Japan and his cabinet Website

Address by Prime Minister Shinzo Abe at NYSE(Sept. 20, 2017)

4

“First of all, we have to change Japan’s corporate culture. Iplace the greatest emphasis on reforms to corporategovernance.

Two years ago, we drew up a corporate governance code.This resulted in the percentage of listed companies withtwo or more independent outside directors rising to 88percent now, up from a mere 17 percent five years ago.”

We will press forward further with corporate governancereforms so that corporations take management decisionsdecisively, with an awareness of the cost of capital.”

（Source） The Website of the Prime Minister and his Cabinet

Opening Address of Chairman Hiroaki Nakanishi, Keidanrenat the Symposium “Toward Realization of Effective Corporate Governance” hosted

by Keidanren (Nov. 12, 2018)

Promotion of Corporate Governance by the Initiatives of the Business Community

“Corporate governance reform among companies should now be implemented by the initiatives of their top management, and corporate governance should be established not merely in form but in effect as well.”

5

0

1

2

3

4

-4% 0% 4% 8% 12% 16%

6

Enhancing Capital Efficiency through Corporate Governance Reform

It is important to enhance productivity and profitability by strengthening corporate governance, etc. in order to maintain the sustainable growth of companies.

The ROE and PBR of companies are increasing as a whole through the progress of corporate governance reform.

0

1

2

3

4

-4% 0% 4% 8% 12% 16%

2014PBR1.4ROE9.7%

2018年PBR1.6ROE11.5%※MedianPBR

ROE

(Source)Edited by FSA from Bloomberg Data:, JPX Nikkei 400 Companies

7

③Audit quality enhancement

Comprehensive Reform of Japan’s Capital Market

Companies

Capital Market

Asset OwnersHousehold

（Asset Managers）Customer-oriented Asset

Management(High quality products &

services)

Diversified & installment investment for long term

②Corporate disclosure reform

The Stewardship Code and the Corporate Governance Code work in tandem for long-term growthin corporate value

Reform of corporate disclosure to support investment judgement and encourage constructive dialogue

Measures ensuring confidence in audits

①Corporate Governance Code

①Stewardship CodeProgress of asset management

Corporate Governance and Stewardship

Engagement Policy and

its Disclosure

- Voting Record Disclosure

- Stewardship Activities

8

Board Governance

- Independent Directors

- Appointment/dismissal of CEO,

Succession Planning

- Nomination/Remuneration

Committees

Cross-shareholdings

ESG

II. StewardshipI. Corporate Governance

Asset Managers

Investment

Asset OwnersReturns

Listed Companies

Investment

Returns

ConstructiveDialogue

15.0% 16.7% 18.0% 21.5%

48.4%

79.7%88.0% 91.3%

97.7%

0%

20%

40%

60%

80%

100%

2011年 2012年 2013年 2014年 2015年 2016年 2017年 2018年 2018年

9

I-1 (1) ：Independent Directors

The percentage of companies with two or more independent directors have substantially increased to 91.3% of the 1st Section listed companies as of July 2018, and 97.7% of JPX Nikkei 400 companies.

Companies with two or more independent directors

（Source）Tokyo Stock Exchange

JPX Nikkei400

Companies with one third or more independent directors

6.4%12.2%

22.7%27.2%

33.6%40.6%

0%

10%

20%

30%

40%

50%

2014年 2015年 2016年 2017年 2018年 2018年

市場第一部 JPX日経

400

JPX Nikkei400

The percentage of companies with one third or more independent directors have increased to 33.6 of the 1st Section listed companies as of July 2018, and 40.6% of JPX Nikkei 400 companies.

TSE 1st Section

TSE 1st Section

10

The number of female executives has increased to over 1,700, which is nearly 3 times the number 5 years ago. Currently, they account for 4% of all executives of all listed companies.

Trend in the Number of Female Executives at listed companies

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

0

200

400

600

800

1000

1200

1400

1600

1800

2008.7 2009.7 2010.7 2011.7 2012.7 2013.7 2014.7 2015.7 2016.7 2017.7 2018.7

女性役員数（人）女性役員数

同比率

（Source）Toyo Keizai Shinpo-sha, “Executives” include directors, statutory auditors and executive officers.

I-1 (2) ：Diversity of the Board

Number

Percentage

Number of female

executives

%

11

（Source) Questionnaire Survey Results(2018) of Egon Zehnder

I-1 (3): Appointment/Dismissal Policy of CEO

The percentage of companies for whom the Appointment Policy and Dismissal Policy are “Under Preparation” increased drastically.

The percentage of companies with “No Plan” and no reply reduced substantially.

Ratio(%)

Ratio(%)

12

The percentage of companies with Nomination Committees increased from 11% in 2015 to 34% in 2018.

【 Ratio of 1st Section Companies with Nomination Committees】

【 Ratio of the 1st Section Companies with Remuneration Committees】

I-1 (4): Nomination/Remuneration Committees

The percentage of companies with Remuneration Committees increased from 13% in 2015 to 38% in 2018.

Source: Tokyo Stock Exchange

【Trend in the Percentage of Outside Directors in Nomination Committees】

Voluntary

Legally required

Voluntary

JPX Nikkei 400

Outside Director: Majority

Outside Director: Majority

<Composition of Outside Directors>

All ≧2/3 2/3>X>1/2 1/2≧X≧1/3 1/3>

Source: Tokyo Stock Exchange13

I-1 (5): Effectiveness of Nomination Committees

For around 50% of voluntary Nomination Committees, outside directors account for the majority of members.

Legally required1st Section,

Tokyo Stock Exchange

14

Half of the chairman of nomination committees are independent outside directors.

（Source） Survey results in 2018 by Egon Zehnder

I-1 (6): Chairmen of Nomination Committees

15

I-1 (7): Ratio of Companies with ROE as Management Plan Target

37.7%

41.6%

56.5%58.9%

63.3%

30%

40%

50%

60%

70%

2013 2014 2015 2016 2017

（Source） Survey results of the Life Insurance Association of Japan

Ratio(%)

16

3.7

1.2

3.4

5.7

0

2

4

6

8

10

12

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

上場銀行

損害保険会社

生命保険会社

上場事業法人

（％）

（Source）J-IRIS Research

38.037.1

36.1 35.734.3 34.4

33.432.1

31.2

39.1 39.8 40.3 40.7

44.345.6

46.7

49.551.3

22.8 23.1 23.6 23.6

21.419.9 19.9

18.3 17.515

20

25

30

35

40

45

50

55

2009 2010 2011 2012 2013 2014 2015 2016 2017

安定株主

機関投資家

個人その他

（％）

I-2 (1): Trend for Cross-shareholdings

Shareholder composition of listed companies at Nikkei 225 （Ratio of No. of voting rights)

Ratio of shareholdings by shareholder category (market value basis)

Although the ratio of cross-shareholding shares among voting right shares isdecreasing, it has been pointed out that cross-shareholdings between non-financialcompanies have not been significantly reduced and are still at a considerably high level.

（Source）Nomura Securities

Stable Shareholders

Institutional investors

Individuals and others

Number of companies in which cross-shares are held. Total amount of cross-held shares on the balance sheet

At present

I-2 (2): Plans to revise disclosure of cross-shareholdings (provisional)

30 companies each for current year and preceding year

Changes after revision(tentative)（shown in red characters）

Policy of cross-share holdings, process to verify their rationale for holding them

Total amount of shares for pure investment purpose on the balance sheet, received dividend, profit/loss from disposition of such shares, total amount of market values

Definition of cross-held shares and shares for pure investment purpose

Increase/decrease of number of shares, total amount and reason of increase

Number of companies in which cross-shares are held. Total amount of cross-held shares on the balance sheet

Number of companies held for pure investment purpose. Total amount of shares for pure investment purpose on the balance sheet, received dividend, profit/loss from disposition of such shares, total amount of market value

Company SharesB/S

AmountObjective

of holdings

A xxx,xxx xxx,xxx ・・・・・

B xxx,xxx xxx,xxx ・・・・・

・・・

30com

pan

ies Company

(This year)Shares

B/S Amount

(Last year)Shares

B/S Amount

Objective of holdingsBenefit of holdings

Shares held by counterpartiesReason for increase

Axxx,xxxxxx,xxx

xxx,xxxxxx,xxx

・・・・・・・・・・・・・・・・・・・・・・

Bxxx,xxxxxx,xxx

xxx,xxxxxx,xxx

・・・・・・・・・・・・・・・・・・・・・・

60com

pan

ies

・・・

(Last year)

30 companies each for current year and preceding yearCompany Shares

B/SAmount

Objective of

holdings

A xxx,xxx xxx,xxx ・・・・・

B xxx,xxx xxx,xxx ・・・・・・・・

30com

pan

ies

(This year)

17

Constructive Dialogue

Stewardship Code Corporate Governance Code

・Introduced in Feb. 2014・Revised in May 2017(Asset Owners, Conflicts of interest, Collective Engagement)

Guidance 3-3

When investors monitor investee

companies, a variety of factors may be

considered as relevant. Factors may

include (….), including risks and

opportunity arising from social and

environmental matters(….).

I-3：Corporate Governance Reform and ESG issues

Investors Companies

Investment

Returns

・Introduced in June 2015・Revised in June 2018(Nomination Process of CEO, Gender, International Experience, Cross-shareholdings, etc.)

General Principle 3 [Notes]

(….) non-financial information, such as (….), social and environmental matters(ESG factors) is often boiler-plate.

18

18

86

49

80

個別（理由有り）個別（理由無し）集計無し・不明

19

Disclosure of Proxy Voting Results

（Source） by FSA as of Oct. 2018

Over 100 institutional investors including most major domestic investors disclosevoting results of AGM by individual company/agenda basis. Some of them alsodisclose the reasons of “Against” votes.

Reasons of Voting

Investor X

Investor Y

Detailed Descriptione

a

b

c

d

f

II-1 (1)： Voting Result Disclosure

Results by agendaCumulating results

Results by agenda + ReasonsNA

II-1 (2): Voting “Against” Policy by investors and voting agencies

（Source） Compiled from the information of each company website by FSA, as of June, 2018 AGM

Mitsubishi UFJ Trust JP Morgan Asset ISS

Number of Outside Directors

・2 or more outside directors are NOT elected・Against all directors

・1/3 or more outside directors are NOT elected ・Against CEO

・2 or more outside directors are NOT elected<On or after Feb. 2019> 1/3 or more outside directors are NOT elected・Against top management(Companies with Kansayaku Board)

Capital Policy

・ROE is less than 5% for 5 consecutive years and recovery is not expected.・Against a representative director・Deficit has continued for last 3 consecutive years and recovery is not expected.・Against directors serving the subject period

・Poor business results out of mismanagement(extremely low profitability such as low ROE)・Against a director who is considered responsible.

・ROE is less than 5% for 5 consecutive years and recovery is not expected.・To vote against election of top management

20

II-1 (3)： Stewardship Activity Reports by Institutional Investors

21

The quality of disclosure of stewardship activities varies widely by investor. Thereare some investors which disclose examples of actual engagement, while otherinvestors disclose their activities abstractly, or disclose nothing.

Cases of engagement（Industry・Subjects・Results）

Organization of engagement Analysis of

Engagement

Self Assessment

Number of companies and cases of engagement

Name of the companies which were engaged

The subjects of engagement

Overseas Investor A Japanese Investor B

Japanese Investor C

Cases of proxy voting according to engagement

(Provisional Translation by FSA)

The system of stewardship and evaluation of stewardship activities

We contribute to increase of corporate value and sustainable growth of investee companies through exercising voting rights appropriately in accordance with the voting policy of the company.We review our system of stewardship and the results of stewardship activities of the company and believe that such system and the results are appropriate since we conduct stewardship activities in accordance with our stewardship policy.

We will continue to be in charge of stewardship activities primarily through proxy voting.

<End)

22

II-2 (1): Number of signatories of the Stewardship Code

Number of signatories of the Stewardship Code

1 3 6 6 7 7 7 12 1412 16 17 18 19 19 19 19 18

86122 133 141 145 152 153 163 17219

2121 22 22 22 22

22 22

6

67 7 7 7 6

6 6

7

77 7 7 7 7

7 7

0

50

100

150

200

250

300

May Nov. May Nov. May Nov. Dec. Jul. Dec.

Corporate Pension Public PensionInvestment Management InsuranceTrust Bank Others

229214

239

214207201191

175

127

20182015 2016 20172014

23

II-2 (2): Stewardship Activities of GPIF

GPIF (Government Pension Investment Fund, Asset UnderManagement: $1.5 Trillion) accepted the Stewardship Code in 2014and is actively involved in the Stewardship Activities.

• Signed the Principles for ResponsibleInvestment (PRI) in 2015.

• Conducted interviews with all theassigned asset managers on theirstewardship activities since 2016.

• Established “Business and AssetOwners Forum” and “Global AssetOwners Forum” in 2016.

• Established Stewardship Principlesand Proxy Voting Principles in 2017.

• Requested external asset managersfor the disclosure of proxy votingrecords in 2017.

II-2 (3): Stewardship of Corporate Pension Funds and Support of Mother companies

Stewardship Code Corporate Governance Code

Employees(Beneficiaries of pension funds)

Return

Return

Fund

Asset ManagersMonitoring

Mother Companies

Constructive Dialogue

Return

Investment Investment

Corporate Pension Fund

（Asset Owners）

Support of human resources/operations

24

Aioi Nissay Dowa InsuranceEisaiSecomPanasonicMizuho BankMitsui Sumitomo InsuranceNational Construction Association

Sumitomo Mitsui BankingMitsui Sumitomo Trust BankMUFG BankMitsubishi CorporationMitsubishi UFJ Trust & BankingResona BankNTT

311,256

90,521

パッシブ

（Unit: 100 Mil. Yen）

(Source) GPIF, Annual Report Fiscal Year 2015

Passive Investment Ratio of Domestic Equity Investment at Public Pension Funds

Passive Investment Ratio of Domestic Equity Investment at GPIF

(Source) News Letter on Pension & Investment(Note) As of the end of March 2016, the subject funds consist of 9 public

pension funds including GPIF.

（End of the year）

（77%）

（23%） Passive Investment

Active Investment

60%

70%

80%

90%

100%

2005 2007 2009 2011 2013 2015

Reference A. Roles of Passive Fund

Because passive management provides limited options to sell investeecompanies’ shares, institutional investors should actively take charge ofengagement and voting from a medium- to long-term perspective.

＜Stewardship Code Revision Points＞

25

26

(1) Institutional Investors Collective Engagement Forum(IICEF)

Source: Institutional Investors Collective Engagement Forum (partially edited by the FSA)

• Pension Fund Association

• Sumitomo Mitsui Asset Management

• Sumitomo Mitsui Trust Bank

• Mitsubishi UFJ Trust & Banking

• Resona Bank

・ 10 major Japanese life insurance companies（Nippon Life, Daiichi Life, Yasuda Meiji Life,

Sumitomo Life, Kanpo Life, Taiyo Life, Daido Life, Fukoku Life, Asahi Life, Mitsui Life)

(2) Life Insurance Company Consortium for Engagement

Reference B. Collective Engagement by Japanese Investors

・ Sent letters to companies on Material Issues on Sustainability of their Business Models and the Disclosure as a subject for engagement.

・ Sent letter s to companies with corporate scandals regarding their disclosure and engagement.・ Sent letters to companies with AGM agenda which received significant number of “against” votes.・ Sent letters to companies which have takeover defense plans.

Source: The Life Insurance Association of Japan

・ Sent letters to 100 companies asking for improvement of corporate governance/shareholder returns.

27

FSA’s recent developments to attract investors

Joint Consultation Scheme by Tokyo Metropolitan Gov. and the FSA

Foreign Financial business operators can use either/both of the two contact points below

－Tokyo Metropolitan Gov.－

－FSA－

Financial One-Stop SupportService

E-mail: [email protected]: +81-3‐6269‐9981

Financial Market Entry Consultation Desk

E-mail: [email protected]:+81-3‐3506-7109

Professional business consultant to process your inquiry

Advice on how to incorporate your business in Tokyo

Living support (introduction of English-speaking hospitals and international schools)

Introduction of capable attorneys and financial aid for consultation

Inquiries regarding registration

procedures and interpretations of

financial regulations

Constant follow-up toward

registration as an authorized

financial business operator

Joint consultation and a variety of support menu for prospective market entrants through close cooperation

Inquiry Support/Advice

The joint consultation service welcomes any inquiry from foreign financial business operators to establish a business base in Tokyo

URL:http://www.bdc-tokyo.org/?cat=3

URL:http://www.fsa.go.jp/en/policy/marketentry/index.html

Setting up an office in Tokyo Registration to the FSA

28

mailto:[email protected]

“Fast Entry” ; Financial Market Entry Consultation Desk

FSA launched the "Financial Market Entry Consultation Desk" to give advice on Japan’sfinancial regulations to foreign financial business operators (e.g. asset managementfirms) which plan to establish a business base in Japan.

As the first case, a UK asset management company, Legal & General Group, consultedthe desk and completed the registration procedure in approximately half the timegenerally taken.

Schedule of the Legal & General Group case

Prior Consultation

Registration Process

Approximately half the time generally taken

Approximately 2 months

General Schedule

First Prior Consultation

Completion of the Registration Procedure

Approximately 3~4 months

Approximately 1~2 months

Submission of Registration Application

Approximately 2 weeks

Prior Consultation

Registration Process

Completion of the Registration Procedure

Financial Market Entry Consultation Desk

Website: https://www.fsa.go.jp/en/policy/marketentry/index.html

E-mail: [email protected]:+81-3‐3506-7109

First Prior Consultation

29

https://www.fsa.go.jp/en/policy/marketentry/index.html

G20 priorities under Japanese presidency

30

Where are we in the history of the G20?What are the goals of the Japanese presidency?

31

Monitoring and addressing emerging

risks and vulnerabilities

G20’s First Decade

2008：Global Financial Crisis

More capital and liquidity

• Basel 2.5• Basel III• Basel III

finalization

No more “too big to fail”

• SIFI surcharge• TLAC• RRP• Resolution

regimes

OTC derivatives

• Central clearing• Margin

requirements• Trade

repositories• Trading

platforms

Shadow banking

• Securitization

• Repo-market

• MMF

• Banks’ links to shadow banking

2009：The third G20 Leaders’ summit in PittsburghBlueprint of the post-GFC regulatory reforms

32

Pivoting to implementation and evaluation of effects

End-2017: The post-GFC reform agenda largely completed

The G20 in 2019 and beyond

Full, timely and consistent implementation

Evaluation of effects• Central

clearing• Infrastructure

finance• SME finance• TBTF reforms

Addressing market fragmentation

Technological innovation

• Crypto assets

• Decentralized financial technologies

33

Pivoting to implementation and

evaluation

Financial stability and inclusion in an aging society

2019 Priorities

What would you choose as priorities for 2019 and beyond?

Monitoring and addressing emerging

risks and vulnerabilities

Roadmap to Fukuoka and Osaka

34

January 17 Symposium on demographic changes and macroeconomic challenges Tokyo

January17-18

Deputies’ meetings

April 2 (TBD)

Roundtable on AML/CFT issues relating to financial innovation Washington,

D.C.April 11-12 Ministers’ and Governors’ meetings

June 7 Symposium on aging and financial inclusion Tokyo

June 8 Seminar on financial innovationFukuoka

June 8-9 Ministers’ and Governors’ meetings

June 28-29 Leaders’ summit Osaka

Regulatory and supervisory fragmentation

35

• Inconsistent timing of implementation Staggered implementation of the agreed margin requirements, different rules

for counterparties in the same transaction.

• Inconsistent requirements “Almost the same but not exactly the same” data reporting requirements

across authorities.

• Duplication of regulatory requirements Single market, two rules, two regulators.

• Incompatibilities between home and host requirements “Don’t tell others in advance” vs “Tell us in advance” “Have a single parent entity in the host jurisdiction” vs “Separate sector-by-

sector reporting lines” “Install consolidated control” vs. “Keep data local”

• Competition for resources or activities Ring fencing CCP location policy

Market fragmentation

36

• Leaders’ declaration in Buenos Aires: “We will . . . through continued regulatory and supervisory cooperation, address fragmentation.”

• Focus on cross-border market fragmentation caused by regulation and supervision.

• Not about unwinding reforms.

• Market fragmentation is a matter of degree, not a bimodal question.

• Some of the fragmentations are intended.

• Full harmonization is not desirable or possible. Regulation and supervision reflect domestic policy priorities, developmental

stages, culture, available resources, etc. Banks are global in life and national in death.

-> Preventing unintended cross-border market fragmentationby processes and approaches for regulators, supervisors and international standard setting bodies

Technological innovation

Crypto-assets

Crypto assets are borderless by nature.

Can national regulators effectively address the challenges?

• AML/CFT

• Directory

• Platforms

Decentralized financial technologies

Public authorities have overseen financial systems mainly by regulating and supervising intermediaries.

How will they oversee financial systems where decision making and responsibilities are distributed among diverse stakeholders?

37

Aging and financial stability/inclusion

38

• Globally, two billion people will be 60 or over by 2050.

• In Japan, there will be half a million people over 100.

• Globally, there will be 130 million people with dementia in 2050.

• In Japan, about 200 trillion yen will be held by those with dementia in 2030.

There will be an estimated retirement savings gap of US$400 trillion by 2050 for these eight countries alone.

Thank you for your attention!!

39

© 2019 Japan Exchange Group, Inc.

7,000

10,000

13,000

16,000

19,000

22,000

25,000

0

1

2

3

4

5

6

2012/1

2

2013/2

2013/4

2013/6

2013/8

2013/1

0

2013/1

2

2014/2

2014/4

2014/6

2014/8

2014/1

0

2014/1

2

2015/2

2015/4

2015/6

2015/8

2015/1

0

2015/1

2

2016/2

2016/4

2016/6

2016/8

2016/1

0

2016/1

2

2017/2

2017/4

2017/6

2017/8

2017/1

0

2017/1

2

2018/2

2018/4

2018/6

2018/8

2018/1

0

2018/1

2

Nikkei 225

(JPY)

Trading Value(JPY tril.)

系列2 系列1

Jan. 2018

Nikkei 225 reaches JPY24,000 for the first time in about 26 years

(Source: Bloomberg)

2

Dec. 2012

2nd Abe Administration is established

Nov. 2016

Republican candidate Donald Trump wins U.S. presidential elections

Jun. 2016

Leavers edgeUK Brexit vote

Apr. 2013

BOJ begins quantitative and qualitative monetary easing

TSE 1st Section Trading Value Nikkei 225 (closing price)

(22 Feb. close)

*Data from 16 Dec. 2012 to 19 Dec. 2019

Stock Price and Trading Value

21,425.51


Abenomics and Japan’s Stock Market

3

On the back of corporate governance reform and weakened yen, Japanese companies have

increased their earning power and improved shareholder returns.

10.4％22 Feb. 2019

ROEAverage of Nikkei 225 stocks

4.9％2009-12 Avg.

JPY 14.1 tril.FY2018 (forecast)

Dividend Payout1st Section

JPY 6.8 tril.FY2012

(Source: Bloomberg)

JPY 6.5 tril.FY2018*

Share BuybacksAll listed companies

JPY 2.2 tril.FY2012

JPY 590 tril.End of Jan. 2019

Market Capitalization1st Section

JPY 296 tril.End of Dec. 2012

(Source: Tokyo Stock Exchange)

Stock PriceNikkei 225 (closing price)

JPY 10,23026 Dec. 2012

(Source: Nikkei)

(Source: SMBC Nikko Securities *Dec. 2018)

JPY 21,425 22 Feb. 2019

(Source: SMBC Nikko Securities/I-N Information Systems)

+JPY 11,195(2.1 times)

+ JPY 294 tril.(2.0 times)

+5.5%(2.1 times)

+ JPY 7.3 tril.(2.1 times)

+JPY 4.3 tril.(3.0 times)

Independent Outside Directors(at least two, of 1st Section)

(Source: Tokyo Stock Exchange)

16.7％2012

91.3%Jul. 2018

+74.6%(5.5 times)

*As of 13 Feb. 2019


Growing Number of Independent Outside Directors

4

Ratio of listed companies that appoint at least two independent outside directors

1st Section: 91.3％

JPX-Nikkei Index 400: 97.7%

Ratio of listed companies whose independent outside directors

occupy at least one-third of its board of directors

1st Section: 33.6%

JPX-Nikkei Index 400: 40.6%

Ratio of Independent Outside Directors (1st Section)

At least one-third of board of directorsAt least two

JPX-Nikkei Index 400 selection criteria considers governance matters, such as one-third independent board representation.

2011 2014 2015 2016 2017 2018 2018 2014 2015 2016 2017 2018 20182012 2013

1st SectionJPX-Nikkei

400 JPX-Nikkei

400

1st Section

(Ref.)

(Ref.)

(Source) “Appointment of Independent Directors, Establishment of Nomination and Remuneration Committees,

and Disclosure of Sodanyaku, Komon etc. (i.e. Former President/CEOs Holding Advisory Positions) by TSE-Listed Companies” published by TSE (Jul. 2018)


More Companies with Nomination and Compensation Committees

5

Ratio of listed companies that establish a nomination committee (statutory/voluntary)


JPX-Nikkei Index 400: 61.2％

Ratio of listed companies that establish a compensation committee (statutory/voluntary)


JPX-Nikkei Index 400: 63.7％

1st SectionJPX-Nikkei

400

2015 2016 2017 20182018 2015 2016 2017 2018 2018

1st Section JPX-Nikkei

400

Voluntary Statutory

(Ref.)

Companies with Nomination Committee (1st Section) Companies with Compensation Committee (1st Section)

(Ref.)

Statutory Voluntary

(Source) “Appointment of Independent Directors, Establishment of Nomination and Remuneration Committees, and Disclosure of Sodanyaku, Komon etc. (i.e. Former President/CEOs Holding Advisory Positions) by TSE-Listed Companies” published by TSE (Jul. 2018)

© 2019 Japan Exchange Group, Inc. 6

• Accurately identify the company’s capital cost

• Bold business decisions, such as reviewing the business portfolio

1. Management decisions that respond to

changes in business environment

• Make strategic investments in systems and other fixed assets, R&D,

and human resources in accordance with plans

2. Policies regarding investment

strategies and financial management

• Establish objective, timely, and transparent process for

CEO appointment/dismissal3. (1) CEO appointment/dismissal

• Secure board diversity in terms of knowledge, expertise, international

experience, and gender to allow it to fulfill its intended role3. (2) Fulfilment of board functions

• Review the purpose of cross-shareholdings as well as their benefits and risks,

disclose them, and clarify policy on unwinding cross-shareholdings4. Cross-shareholdings

• Take and disclose measures such as plans for hiring and assigning suitably

qualified persons for management of corporate pension funds5. Asset owners

Issues regarding Corporate Governance Reform

Summary of Revisions to Japan’s Corporate Governance Code

(Source: Prepared by TSE based on FSA material)

Revisions to Japan’s Corporate Governance Code (1 Jun. 2018)

© 2019 Japan Exchange Group, Inc. 7

Dec. 2017: Joined the Sustainable Stock Exchanges (SSE) initiative.

Jul. 2018: Established the Sustainability Committee, led by Group CEO Akira Kiyota.

Oct. 2018: Expressed support for the Task Force on Climate-related Financial Disclosures (TCFD)

led by the Financial Stability Board (FSB)

Under Japan’s Corporate Governance Code, listed companies are asked to proactively pursue initiatives to provide ESG and other non-financial information.

Listed companies are asked to disclose environmental conservation and CRS activities, as well as initiatives toward appointing female executives in their corporate governance reports.

JPX collaborates with the Ministry of Economy, Trade and Industry to select ：

Nadeshiko Brand Stocks for female empowerment (since FY2012)

and Health and Productivity Stock Selection (since FY2015).

ETFs

Infrastructure Funds

Bond Products for Professional Investors

Stock Price Indices

JPX’s Initiatives for ESG Matters

Supporting listed company initiatives toward ESG

Providing ESG-related products to investors


JPX Expressed Support for TCFD on 29 Oct. 2018

8

On 5 November 2018, JPX welcomed Mark Carney, Governor of the Bank of England and Chair of the Financial Stability Board (FSB), for a discussion on promoting the TCFD.


Current stock market divisions open to the public retain the same structure as those before the integration of TSE and OSE cash equity markets in 2013.

1st Section (2,130 cos.)for companies with high liquidity

→ Five years have passed since market integration, and it has become more evident that the market structure should be improved.

→ Deliberate on (1) to (3), considering the characteristics of companies listed in each market division and the current tiered structure.

(In-depth deliberations are being conducted by the Advisory Group to Review TSE Cash Equity Market Structure established in October 2018.)

Note: Figures for each market division are as of the end of Dec. 2018.

JASDAQStandard (689 cos.)

for SMEs

JASDAQGrowth (37 cos.)

for emerging companies

Delisting

Market transfer

(1) Ideal entry-level market

*2nd Section,Mothers, andJASDAQ

(3) Ideal market transfer / market exit

(2) Ideal step-up market*1st Section

Mothers(276 cos.)for emerging companies

2nd Section(494 cos.)for established

companies

Market for a variety of companies (established / emerging companies)

9

Current Structure of Stock Market

demand (c,i,g,ex) gdp supply (labor, capital, productivity) · 2019-05-29 · demand (c,i,g,ex)...

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