In today’s briefing:
- Despite BoJ’s Post of ETF Sales, the Path to Normalization in Corporate Governance Remains Distant
Despite BoJ’s Post of ETF Sales, the Path to Normalization in Corporate Governance Remains Distant
- BoJ’s policy of small-scale ETF sales appears to have made inflation curb more difficult due to the yen’s depreciation, although it did not trigger a sharp stock market decline.
- The ETFs held by BoJ reduce trading liquidity, thereby increasing stock price volatility and limiting the number of Japanese stocks available for investment by major institutional investors.
- Given that the Bank of Japan’s holdings of ETFs exceed 20% of the issued shares in some companies, the existence of “silent shareholders” is not healthy for corporate governance.
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