Japan aims to reinvigorate Tokyo as global finance hub

TOKYO, May 27, 2007 (AFP) - Faced with growing competition from Hong Kong and Singapore, Japan aims to reinvigorate Tokyo as a global financial hub with a lofty goal of developing a new foreigner-friendly high-rise banking district.

The idea has raised eyebrows among foreign fund managers in the region whose biggest complaint about Tokyo is often not the lack of a decent office or apartment but high taxes and strict regulations.

Yuji Yamamoto, the minister for financial services, recently unveiled a plan for Tokyo's own version of London's Canary Wharf, a gleaming skyscraper banking district in once-derelict British docklands.

High-rise offices with 24-hour access and onsite health clubs would be developed along with housing complexes to encourage foreign banks to cluster in the area in the capital around the Tokyo Stock Exchange and Bank of Japan.

But Yamamoto did not say whether Japan would tackle high taxes and red tape, the most common complaints about Tokyo from fund managers, many of whom opt to work in Singapore or Hong Kong instead even if they manage Japanese stocks.

"Building buildings doesn't create a financial system," said one fund manager based in Singapore who asked not to be named because it could be bad for business.

"Japan has an unfavourable tax regime both for financial products and the individual. The overall operating environment in Japan is unfavourable because there is a deep suspicion of capitalism," he added.

Japan's government, concerned Tokyo has been losing business to rival financial centres such as Hong Kong and Singapore, has set up two expert committees to look at ways to boost financial competitiveness.

"Market share losses to London, Hong Kong, and Singapore have created a sense of crisis," Robert Feldman, a managing director and economist at Morgan Stanley, wrote in a report in February.

He said foreign managers in Tokyo often bemoan the lack of sufficient staff who are fluent in English.

Other frequent complaints include the length of time it takes to travel from Tokyo's Narita airport to the city centre and the firewall in Japan that means corporate and investment banking operations must be separated.

"There are still many many regulations which are a big problem," said Martin Schulz, a research fellow at the Fujitsu Research Institute.

He said firms were increasingly looking to integrate their banking and brokerage business which is not yet possible in Japan.

"This is where the money is and it's a problem for many of these banks," he said.

Britain's "Big Bang" overhaul of its financial regulations two decades ago and its pool of English-speaking workers helped to make London Europe's top financial centre ahead of Germany's Frankfurt.

The head of the Tokyo Stock Exchange, Taizo Nishimuro, also warned that the plan for a new district for foreign banks, while welcome, will not be enough on its own to boost Japan's financial competitiveness.

"We cannot wait until the time when those high-rise buildings are to be built before the Tokyo financial market gets bigger and greater," he told reporters recently, noting such "hindrances" as regulations and high taxation.

But experts say major foreign banks look set to stay in Tokyo, hoping to benefit from a pick-up in demand for stocks from Japanese individuals and investment banking opportunities in partnership with local players.

US giant Citigroup last month secured a takeover offer of the scandal-hit Japanese securities firm Nikko Cordial for 7.7 billion dollars as hostility to takeovers by foreign companies gradually abates.

And with the Japanese economy recovering from its long slump, Tokyo looks set to remain "a very big market which cannot be ignored by the bigger players," said Schulz.

wonderful news

This would indeed be a perfect time to revive Nihonbashi and Kabutocyo areas

So I support these tax incentives for creating new business districts in Japan.

I like to think Asia is big enough for Tokyo, HK and Singapore to all be major financial centers. And Tokyo is, without a doubt, a happening place. But I agree that buildings alone don't make a financial center and the Tokyo/Japanese govt still needs to create extra incentives to draw the crowd. Now, a 'special zone' within Tokyo -- with a unique tax and regulatory environment -- would be an interesting place indeed.

I don't want those foreign financial companies to come to Japan..
They are like hyaena, they just exploit Japanese society
and I believe the loss generated by them is far bigger than the benefits they bring to Japanese society.

Tokyo is already an international financial centre, albeit a domestic one. Japan is a huge market on its own.

I don't want those foreign financial companies to come to Japan..
They are like hyaena, they just exploit Japanese society
and I believe the loss generated by them is far bigger than the benefits they bring to Japanese society.

too late, dude, they have all been here for years already.
exactly how do they exploit japanese society?

Tokyo is already an international financial centre, albeit a domestic one. Japan is a huge market on its own.

A "Domestic international finance centre," eh? :nuts:

A "Domestic international finance centre," eh? :nuts:

Money flows in and out to international markets, but to service primarily Japanese domestic companies rather than multinationals.

"there is a deep suspicion of capitalism"

really? I didnt know that :(

How much further can Tokyo's finnacial markets be exploited by Foreign-financial firms? They're already here in Tokyo! Furthermore, the Japanerse financial market is already extremely mature.

Fidelity moves Japanese equity trading to Hong Kong

TOKYO, May 29 (Reuters) - U.S. asset management company Fidelity plans to shift its Japanese equities trading desk to Hong Kong from Tokyo in a move that may be the latest sign of Japan's diminishing importance in Asian finance.

Fidelity said on Tuesday it will send seven of its traders to Hong Kong, integrating them with a larger, cross-market trading desk there. The company's 21 Japan fund managers will remain in Tokyo.

A spokeswoman for Fidelity, which in Tokyo has a staff of about 450 and manages about $47 billion in assets, said the firm was not pulling away from the world's second-largest economy.

"We purely made this decision from an operational efficiency standpoint, and it has no impact on the way we do business in Japan," said Tomoko Aikawa, the company's director of corporate communications in Tokyo. "It's not going to change our commitment (to Japan)."

But that may be little consolation for Yuji Yamamoto, Japan's financial services minister.

Last week, Yamamoto admitted what many financial players have said for some time: Tokyo risks becoming Asia's financial backwater.

"Japan's internationalisation efforts have lagged," Yamamoto said in a speech to the American Chamber of Commerce in Japan.

Despite its economic strength, Japan accounts for only 5 percent of financial industry profits worldwide.

In 1990, Tokyo's stock market capitalisation made up 30 percent of the global total. By 2006, the contribution had fallen to below 10 percent.

The merger and acquisition market here is just a 12th of the size of the U.S. M&A market, and currency trading amounts to about half of the U.S. market total, according to the Nikkei business daily.

EXODUS FROM TOKYO

High taxes and finicky regulators have been blamed for driving foreigners to smaller but more cosmopolitan centres such as Singapore and Hong Kong.

"The Asia FX market was focused all around Tokyo. In the last two years, we've seen an exodus, literally an exodus, from Tokyo towards Singapore and Hong Kong, with Singapore leading the way," said a currency broker in Hong Kong.

With the rise of those centres, Tokyo is increasingly seen as a national financial hub, not an international one, said Nick Frank, director of Strategem Global Recruitment in London.

"Even though my background is Tokyo and my original recruitment network has always been in Tokyo ... 70 to 80 percent of my business in now in Singapore and Hong Kong," said Frank, who specialises in placing bankers in Asia.

Yamamoto has acknowledged that countries with low corporate taxes such as Singapore have had an easier time luring foreign firms than has Japan.

However, he has so far given no hint that Japan would ease its tax rate for companies.

He has said Tokyo should launch its own version of London's Canary Wharf, a revitalised district now home to some of the world's largest financial firms.

More favourable zoning rules could help lure more financial firms to the Nihombashi area near the Bank of Japan, he said.

It`s never too late. I want to remind to everybody that behind Japan there is a strong economy and a lot of liquidity...try to ask to CITIgroup if they are not interested in Japan!!
The problem is: the japanese governemt plan will be successful??
I want to see the plan before judging

Boost for Tokyo bourse as Chinese firm soars on debut

TOKYO, Aug 8, 2007 (AFP) - Shares in the first mainland Chinese company to list on the Tokyo Stock Exchange's main section got off to a flying start Wednesday, boosting the bourse's hopes of attracting more foreign firms.

China Boqi Environment Solution Technology (Holding) Co. drew strong investor interest at its debut, ending the first day of trading at 258,000 yen, 61 percent higher than the initial offering price of 160,000 yen.

The TSE has been struggling to attract foreign firms, particularly after a string of technical problems, hindering its efforts to compete with overseas rivals seeking to become Asia's pre-eminent bourse.

Only 25 foreign companies are now listed on TSE, mostly from the United States and Europe, compared with a peak of 127 in 1991.

"As the Tokyo Stock Exchange is trying to boost its position as Asia's core bourse, we want to invite more Chinese companies," said TSE spokesman Toru Onoda.

China Boqi, which is officially registered in the Cayman Islands tax haven, engages in designing, building and installing environmental equipment, including desulphurisation devices used at coal-fired power plants.

"Environmental protection is a big task as the Chinese economy grows. The government is set to require stricter measures. It will be a big business opportunity for China Boqi," chief executive Bai Yunfeng told reporters.

The 32-year-old executive said the group also wanted to advance into carbon emissions trading, garbage disposal in urban areas and projects to convert sea water into fresh water.

The group, which has acquired environmental technology from top Japanese companies Chiyoda and Kawasaki Heavy Industries, is the first foreign company to list its shares only on the Tokyo bourse.

China Boqi chose Tokyo because of the group's ties with Japan as well as the Tokyo bourse's long history and large scale, Bai said.

"We are also opening a channel through which we will communicate and make technical exchanges with Japanese companies that have high technology," he said, adding the group had no plan to list elsewhere at the moment.

China Boqi raised some 800 million yuan (105.6 million dollars) from the share offering in Japan after paying commissions, according to chief finance officer Tien Chau.

As concerns about global warming grow, environment-related stocks are becoming increasingly popular among investors, noted Nikko Cordial Securities broker Hiroichi Nishi.

"Institutional investors and investment trusts are actively buying environmental shares for their portfolios," he said.

Bai noted the flotation came exactly one year ahead of the Beijing Olympics, saying the group wanted to help "hold a green Olympics."

In an effort to expand its global reach, the TSE has been stepping up global alliances, linking up with the New York, London and Singapore exchanges.

The TSE has had a difficult time of late. It suffered its worst-ever system crash in November 2005. The following January it closed early for the first time ever after a scandal at Internet firm Livedoor sparked a wave of selling.

just wondering, hkskyline: what's your personal view on Tokyo's plans to re-establish itself as Asia's financial hub? can it succeed, or is there just too much competition from more internationalized centers like HK and Singapore? Does the Japanese govt actually do anything to make it more attractive to foreign companies?

Japan itself is a huge market, so Tokyo being a domestic financial centre alone is enough to put it ahead of Hong Kong and Singapore. However, a financial centre ought to be strong both domestically and internationally. The infrastructure is there for Tokyo to succeed except English language skills. If English levels are far better to cater to the international crowd, then Hong Kong and Singapore would be on the run, not the other way around. From a logistics point of view, I'd rather have the largest market in Asia cover the whole continent if I can. On the other hand, Asia is really divided from a cultural standpoint, so having several large financial centres in the region is much more feasible than say, in the US.

I don't think Tokyo can succeed beyond a huge domestic financial centre unless English levels improve. But even then, it won't be the ultimate Asian financial centre. China won't let that happen, while SE Asia is probably too far away. The region would be split between a few cities.

So the key driver is for more Japanese people to learn the English language?

Thanks for the heads-up info. :)

As much as I love Japan and think Tokyo is a wonderful place it is only a global city because of its economic importance. Tokyo has completely missed the boat in my opinion, if the Japanese could have used some of the excitement surrounding the economy in the 1980s to attract more foreign workers (and not just english teachers!) then perhaps this momentum could have carried on well into the 90s and set the city firmly on a path to internationalisation.

Now Tokyo's rivals aren't just London and New York, they are Hong Kong, Singapore, a resurgent Shanghai and Dubai whose sheiks seem to have an unlimited amount of cash and ambition.

I used to live in Osaka and worked in Tokyo for a few months whilst I was in Japan. What really hit me when I worked in Japan were how few foreigners there were.

The biggest employer of foreigners in Japan apart from the US Navy is NOVA Group, who employ around 7000 teachers, most of which are concentrated in Kansai and Kanto.

Even in areas such as Nihombashi in Tokyo or Umeda you could go around walking for hours without seeing even one westerner. Kobe deserves a mention too but is overwhelmingly Japanese. It was still a case of 'spot the lost foreigner'.

I always enjoyed the fact that Japan was so isolated however because it felt more special and unique living, working and travelling around the country.

But to go back to the original topic. Hong Kong, Singapore and say Bangkok all feel international, they first two have histories to link them with Britain and its former Empire which gives them a different feel. Being a foreigner in Hong Kong or Singapore feels more natural, being a gaijin in Japan is a totally different feeling, exclusive rather than inclusive, and outsider rather than an insider.

I was researching on the internet the other day and according to Tokyo Metropolitan government there are around 7800 British people living in the city. In London there are more than 20,000 Japanese, a lot of them students. There are 18,000 Americans in Tokyo and 45,000 in London as of 2001.

I walked through the campuses of Tokyo and Waseda universities back in 2006 and hardly saw any foreign students. This wasn't suprising though, I had become used to not seeing many tourists/foreign residents in my 2 years in Japan.

In London where I studied at UCL, Kings and LSE there are thousands of foreign students. 25% of UCL's undergraduate intake is from outside the UK and the figure is nearly 70% from the LSE. It feels cosmopolitan and international in London, anyone can feel at home here. In Tokyo though the ex-pat community is largely comprised of English teachers (transient), embassy staff and financial workers (also transient to an extent). The only parts of the city that feel remotely international are Roppongi (perhaps not the best advert!) and Higashi-Shinjuku.

Tokyo's problem is largely Japan's problem however. The country hasn't really fully opened up to the rest of the world yet and, to be honest, the people who I talked to despite being impeccably polite and welcoming, harboured an attitude towards foreigners as a cross between an exotic homonoid species and mistrust. This is something that will have to change in my opinion as well as the regulations if Tokyo is to rival Hong Kong and Singapore. This will take a generational shift rather than a few slick domestic advertising campaigns though.

At the moment I do love Japan as it is though, a homogenous bunch of polite, decent and hard working people. That is something that makes it special and unique in today's world. But it is also something that is still holding this great country back.

Even in areas such as Nihombashi in Tokyo you could go around walking for hours without seeing even one westerner.
I would stay away from that area, and never touch it.

Even in areas such as Nihombashi in Tokyo or Umeda you could go around walking for hours without seeing even one westerner.

Exaggerated in my opinion. For instance, most times I ride the Yamanote line I come across with other westerns in the wagon.

And not just the westerners. Need more ethnically diversed populations. The racist attitudes dominated amongst many old people here should not be tolerated.

A homogenous bunch of polite, decent and hard working people. That is something that makes it special and unique in today's world. But it is also something that is still holding this great country back.
They cannot express themselves very well in English but astonishingly aggressive when they speak in Japanese. They are basically polite only towards the westerners. If you know what I mean, this is terrible.

Tokyo is not a global financial hub at all. I envy Hong Kong.
Wanna live there. Take me. It's some kind of torment to live in Tokyo.

TSE deal advances Tokyo as Asian hub
Start-ups market set with London bourse; drilling for listings
31 October 2007
The Wall Street Journal Asia

TOKYO -- Tokyo Stock Exchange Group Inc. and London Stock Exchange Group PLC have agreed to establish a market for Japanese and Asian start-up companies, a development highlighting Tokyo's efforts to become a financial center for the region.

The proposed market, to be modeled on London's Alternative Investment Market for young companies, is expected to begin operating by the end of next year, said Atsushi Saito, the Tokyo exchange's chief executive. Not yet named, it will be headquartered in Tokyo but will run as a joint venture, he added. The Tokyo and London exchanges signed a cooperation agreement in February.

The Japanese government, worried about shrinking employment in the manufacturing sector, is trying to promote Tokyo as a financial center in hopes of generating lucrative jobs. The new market would also help meet the needs of Japanese investors, who increasingly are looking for returns greater than the near-zero yields on their bank accounts, and those of fast-growing Asian companies, many of which are looking for capital to fuel their expansion.

Though Tokyo has great potential, a combination of opaque regulations and high taxes have kept it from growing as an international market, according to critics. High costs also have been cited. For example, listing fees on the Tokyo exchange, known as the TSE, are among the highest of major stock markets.

Several high-level panels have looked at ways to increase Japan's appeal as a financial center. Government officials have publicly stated that raising the country's presence as a market is a high priority, though few concrete actions have been taken.

Establishing the new stock market would also help the TSE's reputation, tarnished several years ago by technology glitches. Despite much preparation for an initial public offering of its shares, the TSE remains privately held, owned by the brokerages and banks that trade through it.

The lack of publicly traded shares has left TSE lagging behind listed global exchanges, which are increasingly buying each other to create economies of scale. Earlier this year, the TSE bought a stake of nearly 5% in Singapore Exchange Ltd., the listed company that runs Singapore's stock market.

Whether the new market will enhance Tokyo's appeal as a place for Asian companies to raise funds remains an open question. Despite a charm offensive concentrated on China and South Korea, the TSE has had limited success attracting foreign companies. Just five have listed in Japan during the past four years. Meanwhile, many listed companies are leaving: The number of overseas companies on the TSE is now 25, down from 127 in 1991. They mainly said they found the costs of being listed in Tokyo outweighed the benefits.

"They keep drilling on this aspect," Neil Katkov, an analyst at Celent LLC, a financial-industry consultant, said about the TSE's efforts to attract more foreign companies. "But nothing's really panned out."

In all, the TSE has added just 34 companies this year, according to data tracker Thomson Financial, compared with the Nasdaq Stock Market's 197 and the London Stock Exchange's 184. Tokyo's much smaller regional competitors in Hong Kong and Singapore have added 63 and 46, respectively.

Mr. Saito said the new market would seek to improve Tokyo's attractiveness, and would limit trading participation to qualified professionals, such as pension plans and mutual funds. One idea under consideration is to allow companies listing on the new board to file application and disclosure documents in English, eliminating the cost of having it translated into Japanese. Mr. Saito said the new market might also apply looser listing standards than other parts of the TSE.

i am looking for a serious answer.
what does london have to do with japan?
what is the corelation?

^ London's AIM model is coming to Japan.

I have a couple of questions for you guys..
First, what is AIM model?
Second. I heart somewhere that new skyscrapers are going to be built where many ministers are now located. All the new skyscrapers will create the international financial center in Tokyo...Do you have any more detailed news about that? There is any plan or the Government already forgot is goal?

AIM : http://www.londonstockexchange.com/en-gb/products/companyservices/ourmarkets/aim_new/About+AIM/

Tokyo bourse to aim to start listing ETFs in March

TOKYO, Jan 29 (Reuters) - The Tokyo Stock Exchange [TSE.UL] aims to begin listing commodities-linked exchange-traded funds (ETFs) by March, the head of the exchange said on Tuesday.

TSE President and Chief Executive Atsushi Saito told a news conference these ETFs could be backed by commodities such as crude oil or gold.

"We will start to take steps to introduce the new system from March," Saito said.

The TSE revised its listing rules in November, paving the way for the listing of such ETFs.

ETFs are like investment trusts that track indexes but trade on exchanges in the same way as individual stocks.

Gold-backed ETFs, which are listed on exchanges in New York, London and Singapore, have helped attract retail and institutional investors to the bullion market, helping to broaden the market base.

"This means that I think we will be able to provide quite a few ETFs from the spring," Saito said.

The Osaka Securities Exchange , Japan's No. 2 bourse, last year launched Japan's first gold price-linked ETF.

However, this tracks a yen-based gold price index and is not backed by bullion.

The Japanese unit of Axa Investment Managers said this month that it plans to list its ETF tracking the S&P GSCI index <.SPGSCITR>, the world's most popular commodity index, on the Tokyo bourse by the end of March.

Separately, Saito said on Tuesday that he did not expect Japan's stock market to remain weak for long.

There are some Japanese economic figures indicating future weakness, but they are not as worrying as those of some other countries, he said.

Japan minister backs tax exemption for elderly

TOKYO, Aug 25 (Reuters) - Japan's financial regulator will recommend a tax exemption on investment income earned by the elderly in a bid to revitalise domestic capital markets, Financial Services Minister Toshimitsu Motegi said on Monday.

The world's second-largest economy also needs to rejig its corporate tax code so that income earned by Japanese companies abroad is no longer taxed at the Japanese rate, Motegi told reporters at a news conference.

Motegi, who was appointed in a cabinet reshuffle this month, has been charged with boosting Tokyo's competitiveness as a global financial centre, with foreign investors saying the city has fallen behind regional rivals Singapore and Hong Kong.

Part of the solution may be Japan's $14 trillion in household assets, the majority of which is held in cash or bank deposits by those over 60, Motegi said.

He said that "special tax treatment" for dividends and capital gains earned by elderly investors would be part of the country's tax reform package for the 2009 fiscal year, which is currently being drawn up.

He also said he favoured tax exemptions on capital gains as a means of boosting the number of small investors, giving no details of the cap on the likely exemption.

The Nikkei business daily said on Saturday that the regulator plans to recommend a tax exemption for the elderly on investment income up to 5 million yen ($45,400) and 1 million yen in dividends.

The agency will also call for an exemption on dividends from investments of up to 1 million yen for all other investors, the paper said.

Motegi gave no details of the exact age group to be covered by the scheme but said that more than 60 percent of the country's household assets are held by those aged 60 or older.

He also outlined plans for a tax exemption for companies' foreign income, currently covered by a 40 percent domestic rate that is among the highest among major economies.

"Such a tax system has prevented (companies) sending profits back to parent companies in Japan," he said.

Tokyo has a chance to be a world Finance center now

The Investment bank in US that has returned the foreign capital to the United States up to now is in the state of the crisis.

I think the Japanese ones will be the substitute.
That is, the capitals of the world are collected in Tokyo and it returns to the
United States.

A political responsibility of the United States is to make the war.
And, the president at that time cannot be Obama.
It changes the recession of the world into the boom. only US can do that in internationl politics and it never change.
Tokyo substitutes for NY if there is an ambition in Japan.

And not just the westerners. Need more ethnically diversed populations. The racist attitudes dominated amongst many old people here should not be tolerated.

why? Japan has been japanese for thousands of year, we dont need to change this. If you dont like it then dont move/come there

^^ You do realize that your are replying to a year old post by a banned member?

ごめんなさい。

みやん

i have no problem with homogeneous nation states...

and if by chance someone moves to a ethnically dominate country logic dictates that "when in rome do as the romans"

i have no problem with homogeneous nation states...

and if by chance someone moves to a ethnically dominate country logic dictates that "when in rome do as the romans"

There is nothing inherently "wrong" with ethnically homogeneous nation states, or as is the case with nearly every "homogeneous" nation state out there, the myth of state homogeneousness (Japan included).

Problems arise, however, when states put maintaining the ethnically homogeneous status quo above other national interests. The demographic reality of Japan today presents the Japanese with what would seem to be an easy choice: maintain homogeneity at the cost of standards of living, or accept immigration levels necessary for maintaining standards of living at the cost of homogeneity (and yes, I know there are other options like restructuring the current gender regime to allow for women to be full time workers AND mothers concurrently, or building robots to take care of the staggering number of elderly, but anyone who has spent time living in this country knows neither of these are likely).

European nation states learned decades ago that in order to keep population growth at replacement levels necessary to properly fund pension systems and fill sectors of the economy deemed undesirable as workplaces by the vast majority of college educated people or that are suffering from a lack of qualified candidates (geriatric nurses, anyone?!), immigration must be allowed. Of course, immigration presents a whole new set of problems, which will be particularly acute for Japan (language and cultural integration), but these must be overcome if Japan is to remain a competitive OECD member. When the old men running the Keidanren say unequivocally "as a nation, Japan needs to understand that immigration is the only viable solution for remaining a top tier economy" . . . well, that speaks volumes.

Racial and ethnic homogeneity is not necessarily bad. Keeping homogeneity at the cost of standards of living is idiotic.

i agree fully with the economic reasoning behind immigration and the need to replenish a labor force.

but i am also a strong advocate of national culture and the host nation should not be forced to change its ways to accommodate the coming labor.

Japan should strive to protect its national identity/culture, BUT there is nothing at all wrong with 'mixing it up' a little bit. I live in New Zealand, a country where 20% of its population were born overseas and it is a perfect example of how different cultures/races can live side by side. It is not uncommon to see a European walking down the street, chatting away to an African, or an Asian and a Pacific Islander having coffee together.
During my time in Japan I noticed that there was a general distrust, a stigma, against foreigners, which the Japanese Government needs to combat effectively before it even thinks of trying to attract people from overseas. Who is going to want to live and work in a country where they are constantly discriminated against? I was disgusted to come across several bars, restaurants and onsens in Japan that had signs outside saying 'Japanese only. No foreigners allowed'. How on earth are they allowed to get away with that?

Japan should strive to protect its national identity/culture, BUT there is nothing at all wrong with 'mixing it up' a little bit. I live in New Zealand, a country where 20% of its population were born overseas and it is a perfect example of how different cultures/races can live side by side. It is not uncommon to see a European walking down the street, chatting away to an African, or an Asian and a Pacific Islander having coffee together.
During my time in Japan I noticed that there was a general distrust, a stigma, against foreigners, which the Japanese Government needs to combat effectively before it even thinks of trying to attract people from overseas. Who is going to want to live and work in a country where they are constantly discriminated against? I was disgusted to come across several bars, restaurants and onsens in Japan that had signs outside saying 'Japanese only. No foreigners allowed'. How on earth are they allowed to get away with that?

you mean hostess bar?
restaurants?
onsen? you went to hokkaido?

During my time in Japan I noticed that there was a general distrust, a stigma, against foreigners, which the Japanese Government needs to combat effectively before it even thinks of trying to attract people from overseas. Who is going to want to live and work in a country where they are constantly discriminated against? I was disgusted to come across several bars, restaurants and onsens in Japan that had signs outside saying 'Japanese only. No foreigners allowed'. How on earth are they allowed to get away with that?

When I lived in Japan, my impression was the japanese are friendly and relatively opened to foreigners. But.. the reason why they don't allow westerners in certain places is because *some* westerners annoy a lot the other customers. I.e., many apartments are off-limit to westerners because some make too much noise and don't respect their neighbors. In some public baths, they may not be welcomed because too often in the past they didn't wash before entering in the bath. And so on. Although it may seem to be, this is not discrimination per se. Rather, this is related to economic pressure -- if the shop owners allow westerners in, the other customers will be annoyed by their somewhat bad manners and will leave.

When I lived in Japan, my impression was the japanese are friendly and relatively opened to foreigners. But.. the reason why they don't allow westerners in certain places is because *some* westerners annoy a lot the other customers. I.e., many apartments are off-limit to westerners because some make too much noise and don't respect their neighbors. In some public baths, they may not be welcomed because too often in the past they didn't wash before entering in the bath. And so on. Although it may seem to be, this is not discrimination per se. Rather, this is related to economic pressure -- if the shop owners allow westerners in, the other customers will be annoyed by their somewhat bad manners and will leave.
Well ... assuming the above points are true, it still does not justify racial discrimination

thats before..now they are expecting more foriegner to visit.they want to be one of major tourism nation like france china or US.and i tell you,young generation in japan are much enough annoying than foriegner in public.lol.i noticed,number of foriegners(mostly tourist) in tokyo suddenly increased with this 2,3yrs.
esp chinese!btw,average expence(only with shopping)of chinese tourist in japan is 150,000 to 200,000 yen.
tourism would be good help 4 declining population prob in japan.
so every body welcome^^
but booming of exchange rate lately would be a big obstacle for tourist planing to come in japan..now 1USD is already below 100yen.1euro is also going below 135yen!it was 170 jst some month ago!
worst is korean won!it was like 7,5won per 1yen at peak just a yr ago.and now its almost14won per yen!its like one half!
20 to 30% of tourist visiting japan is korean people.they are #1 visiter.if this situation lingers, gona be suck for tourisms in japan

At least, I don't like those drunken boisterous behavior VERY common in the UK on Friday evening. wtf is all that roaring and public intimidation!?

speaking of the British what about going naked about Tokyo and palace grounds now that is just disrespectful..

i agree with princeofseoul that if you dont know how to behave in dominate cultural environment then maybe your place shouldn't be there..

Well, immigration itself is a rather big term that is being confused a lot these days. A lot of European countries see immigration from poorer countries, such as former colonies, where people with low skills come over and take over the lower-end of the job spectrum.

I don't think there is a problem with a well-educated person moving to Tokyo for a fancy expat job, but is Japan ready to let in the less-educated ones that might be driving the taxis and clearing the garbage?

Japan utilities may join in trial CO2 trade -Nikkei

TOKYO, Oct 16 (Reuters) - Major Japanese companies including utility firms are expected to join in a local over-the-counter market for carbon offsets that the government is to launch later this month, the Nikkei business daily said on Thursday.

Details of the trading rules for the new market are to be announced next week, the Nikkei said.

The electric power sector, the biggest direct emitters of energy-origin carbon dioxide in Japan, has been reluctant to use any market scheme based on a particular company rather than an industry sector.

In Japan, the government's commitments to cut greenhouse gas emissions under the Kyoto Protocol are based on each industrial sector's voluntary reduction targets, apart from its pledge to buy carbon credits from abroad and spend on forest conservation.

The government has said it would start accepting later this month applications from companies seeking to join the new market, which will be run on a trial basis aimed at accelerating each individual company's efforts to cut emissions.

A government official said last week that Japan was hoping over 1,000 companies, including big firms, would join in the market, which will run separately from the existing subsidised over-the-counter emissions trading scheme that commits small companies to mandatory emissions caps. [ID:nT28359]

While the electric power sector will maintain its sector-based reduction target, each power company can choose whether to use the new market, the Nikkei said.

Steel makers will be allowed to join the new market as a whole sector as they have a sector-wide mutual fund that buys credits from abroad to help them meet their reduction target, the Nikkei said.

In addition to steps aimed at improving energy efficiency at home, the steel sector has set up a fund for investing in clean energy projects in developing countries which in exchange provides carbon credits under a Kyoto scheme.

Finally, many western hedge funds and banks are getting what they deserve.
Money gamble is over. ;)

Finally, many western hedge funds and banks are getting what they deserve.
Money gamble is over. ;)


It's not funny at all. Money gamble is over, at what cost?

It's not funny at all. Money gamble is over, at what cost?

Well,
I was especially talking about the recent news of hedge funds in Japan.
They surely have been doing shady business here in Japan and finally they are getting market by the authorities.


Tokyo hedge-fund gloom: The strange saga of Whitney in Japan
Posted by Gwen Robinson on Dec 08 12:51.

The curiously grey status of foreign hedge funds in Japan just gets - well, curiouser and greyer. A little announcement popped up on the website of Japan’s key financial regulator, the FSA, on Friday saying the watchdog is considering “administrative measures” against Japan Advisory for alleged insider trading.

As Tokyo’s investment community knows, Japan Advisory is essentially the Tokyo office of JH Whitney Investment Management, the US investment and hedge fund group. Like most foreign hedge funds running Japan funds or dealing with Japan-based clients, Whitney’s operations in the country, through Japan Advisory, are purely an advisory and research business. Due to complicated tax reasons, some of them explained in a post here, few foreign hedge funds undertake any “real”, meat-and-potato business in Japan; no buying, selling or shorting, you understand.

While the FSA’s website also has an English language section the announcement of the insider trading allegation was posted only in the Japanese language part and went almost unreported by media. Remarkable, really, considering that in many respects, Whitney’s case has potentially big implications for the 250-plus foreign hedge funds operating in Japan.

[An aside here, Japan-focused hedge funds are among the most secretive in the global industry; insiders say there are at least 400 Japan-focused hedge funds in total – many of them run from Singapore, Hong Kong, London or a variety of exotic tax havens. If they trade or transact business in Japan, they can become liable for painfully high Japanese corporate taxes on their entire global profits and assets - a situation that, as a seasoned observer notes, makes it “very tricky” to get exact figures. In terms of value, ball-park estimates put the net value of the Japan-focused funds in Tokyo at $150bn, at least. But who knows?]

The staff at Japan Advisory – which incidentally was culled earlier this year, from what we gather was about 25 heads or so to around 15 - are primarily research analysts, or at least, they are categorised as such.

The story, as explained briefly in the FSA notice, was that in August last year, one of Japan Advisory’s research analysts obtained information about a certain company that was about to launch a share buyback. The information was then passed to JA’s “representative officers”, who then allegedly advised clients to buy the shares. Compliance officers were not informed, the FSA says. The company in question announced its buyback on August 27 and a tidy profit was presumably made by certain investors.

Japan Advisory’’s chief operations officer, when contacted by FT Alphaville, declined to comment.

In the past, Japanese regulators have meted out some big penalties to foreign investment banks, as well as to Japanese financial companies, for wrongdoing related to insider trading and other illegal activities. But it’s very unusual, some say unprecedented, for Japan’s Securities and Exchange Surveillance Commission – an investigative arm of the FSA that deals with insider trading and other misconduct – to put together a case such as that against Japan Advisory, nearly one year and four months later, and send it in the form of a “recommendation” to the FSA to take action. In fact, it appears to be the first such move by the FSA against the semi-visible world of foreign hedge funds in Japan.

What is loud and clear, however, as one FSA official acknowledged, is that the SESC, having beefed up its investigative capabilities in terms of human resources and funding in the past year, is now taking a more active stance on financial misconduct to “spot these kind of activities”, as the official put it.

A recent case involving BNP Paribas and a Japanese property developer in a highly complex fundraising deal is another example of the FSA’s growing activism in this field.

The Whitney case is another matter: essentially, when you start seeing insider trading accusations against firms that ostensibly don’t trade - anything - in Japan and pay negligible tax as a result, you know the whole “shadow kabuki” of a hedge-fund-industry-pretending-not-to-be-a-hedge-fund-industry is heading for some kind of denouement. With its low-key announcement, the FSA has struck a blow against some of the pretense around the industry.
So where does that leave Whitney and its Tokyo office? In Japanese financial bureaucracy-speak, “administrative action” could mean simply an order to the offending firm to tighten up its governance or compliance systems. The legal act that the case falls under (article 51 of the the Financial Instruments and Exchange act) does not provide for fines or other such penalties.

But it does allow other measures including suspension of business. Then again, the FSA may choose to do nothing, according to the FSA official. At this stage, he says, the prospect of “administrative action” against Japan Advisory is merely a recommendation from the SESC, on which the FSA can choose to act in a variety of ways.

While the Whitney/Japan Advisory case has had little or no publicity, it is being very closely watched by the foreign hedge-fund industry in Japan - which is already contending with a toughening regulatory environment on how they operate in the country.
Ironically, Whitney is said to have done “extremely well” out of Japan in the past few months, after a bad run earlier this year.

Unlike Citadel, which on Monday announced it was shutting down its Tokyo and and Asian principal investments operations by the end of the year, cutting 37 jobs in the region - 12 in Tokyo and 25 in Hong Kong.
Citadel clearly has its own problems. But in Japan, the signs of more rigid policing by regulators will undoubtedly add to the growing discomfort among Japan-focused hedge funds about operating in a very grey area within the country - and what their ‘research analysts’ shouldn’t say and shouldn’t do on the ground in Tokyo. As one hedge fund representative, eyeing Japan Advisory’s case, remarked: “This kind of thing makes people very nervous, we’re wondering about how you keep doing business here”.
http://ftalphaville.ft.com/blog/2008/12/08/50170/tokyo-hedge-fund-gloom-the-strange-saga-of-whitney-in-japan/

Japan needs robust finance industry -new FSA boss

TOKYO, July 14 (Reuters) - Japan needs a more robust financial services industry to help boost the world's second-largest economy, the new head of the financial regulator said on Tuesday.

Katsunori Mikuniya, a 58-year-old veteran bureaucrat with a reputation for expertise in capital markets, also said he would work to improve Tokyo's standing as a global financial centre.

"The population is set to age and shrink further," Mikuniya said at his first news conference as commissioner of the Financial Services Agency (FSA).

"A virtuous circle needs to be in place between the role of the financial sector in supporting the real economy and finance as a viable industry."

Mikuniya, previously head of the FSA's supervisory division, replaces Takafumi Sato, who served in the position for two years.

He takes the helm of the regulator as Japanese financial firms grapple with a sliding domestic economy and hefty losses.

Japan's top three banks lost a total of 1.2 trillion yen in the year to March, hit by rising bad loan costs and a sharp fall in their stock portfolios.

"The economy is in bad shape right now and the markets may not recover unless someone carries out reform," said Seishi Ikeda, a lawyer specialising in capital markets at Baker & McKenzie in Tokyo. "I would expect Mr. Mikuniya to work on steps that would help invigorate the markets."

TOKYO CALLING

The FSA is also desperate to improve Tokyo's position as a financial centre, which has been overshadowed in recent years by Hong Kong and Singapore, which boast lower taxes and lighter regulation.

As of 2005, financial services made up just 7 percent of Japan's economy, compared with more than 12 percent in Hong Kong and more than 10 percent in Singapore, according to FSA data.

Under Sato's watch, the FSA rolled out a plan to win back foreign firms by removing the firewalls between banks and brokerages, rejigging tax laws for foreign funds and allowing a market for professional investors.

The Oxford-educated Sato also gave frequent interviews to the foreign media and regularly addressed foreign bankers in the hopes of improving Japan's image in global finance.

It is unclear whether or not Mikuniya will be as foreigner friendly, although he is said to have a strong background in capital markets. In a 2006 interview with the Nikkei daily, he stressed the need for flexibility in applying rules.

Western banks are increasingly trimming their Tokyo operations. HSBC, Europe's largest bank, in April shut its Japanese equity research and trading businesses as part of a global staff reduction.

Separately, Kyodo News said the FSA had decided to extend a temporary freeze on short-selling. Mikuniya told the news conference that nothing had been decided.

This year's big hit movie "Hagetaka (The Vulture)", which is a sequel to NHK drama series of the same name:
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Here’s the second teaser for Hagetaka, the theatrical continuation of the award-winning NHK drama which aired in 2007. Thankfully this one actually has some in-movie footage instead of a bunch of rehashed scenes from the show.

The original drama focused on the cutthroat tactics of Wallstreet-trained banker Masahiko Washizu (Nao Omori), aka “Vulture”, as he returned to Japan and attempted a hostile takeover of the bank he once worked for. In the film, a Chinese fund manager (Tetsuji Tamayama)—dubbed “Red Vulture” by the media—attempts a buyout of a major Japanese car manufacturer. Ironically, it’s now up to Washizu to save the day. Ryuhei Matsuda and Chiaki Kuriyama also star. Slated for release in Japan on June 6, 2009.
http://www.nipponcinema.com/trailers/hagetaka_teaser2/


Trailer of NHK drama series on which the movie was based:
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The story is fictional, but based on facts and events actually happened/happening in Japan.
This is how Japanese look at foreign funds. Japanese already realized those funds exploited Japan...

That is not Japan. Fictional. I don't really care what the American funds do. Not normally even interested in it. I'm only playing the game. I don't wanna be a filthy criminal, like, someone invaded from a country neaby who is a wanna-be American. I mean, a wanna-be Japanese. That's a parasite. Keep it clean or killing the pigs turning up from the darkness. I'm gonna kick down every nail feeling foreign to me.

why? Japan has been japanese for thousands of year, we dont need to change this. If you dont like it then dont move/come there

But we were not all always Japanese. A thousand-plus years ago we were from Southeast Asia, China, Korea, Russia (or whatever it was then), Ainu, etc. We added new blood and are the better for it. We need to do that now as well.

^^What's so racist? She just responded to a radical comment and just said something true.
The first word that comes out of your mouth is "racist" all the time. Don't you realize you yourself may be the racist sometimes?
Moreover, don't pick up a comment of 10 month ago.

^^What's so racist? She just responded to a radical comment and just said something true.
The first word that comes out of your mouth is "racist" all the time. Don't you realize you yourself may be the racist sometimes?
Moreover, don't pick up a comment of 10 month ago.

So both of you guys are speaking on behalf of all the Japanese population that you don't want any foreigners in Japan.

How would you feel if the British or the Americans told the Japanese people that they don't want them in their country?

Very true. Normally no European country is being racist like Japan even Germany and Sweden. But I see that the unique Japanese value would destroy the Anglo-Saxons and vice versa. This is the same thing in China never accepts Tibet, for instance. A friend of mine is a Jewish, and he told me that the global cultures enormously divesify, but Japan is just 100% different from the whole planet and I agree with it.

How would you feel if the British or the Americans told the Japanese people that they don't want them in their country?

who cares?
they make the Japanese camps again?

The truth is that Japan needs inmigrants if they want to even maintain population. So japanese must be more open with inmigants, and government should make laws more permissive with legal inmigration.
It was the same problem here in Spain 15 years ago, and thanks to inmigration the prospects of a demographic crisis have vanished.

I was once told that an immigrant can never become a citizen of Japan, no matter how long you may have lived and worked there. Is this true?

^^ Who are you talking to? I love Japan too, why?

I don't know if i love Japan or not but I am japanese. But why do you keep rejoining here and randomly talking about the UK and your palaces and how japanese are bad? You've been doing this for like 2 years now..don't you get tired?

You don't even make any sense, first you said immigrants are evil, and then...? I don't even know what you're talking about! :lol: You even said something about Michael Jackson !?!

Japan forum always gets crazy trolls..

It seems Rank123 is anti-globalism and against foreign influence in Tokyo led by Anglo-Saxons...

And it seems he assumes NihonKitty is non-Japanese and I am British(Anglo-Saxon) who are interferring with Japanese matters, but that assumption is wrong... we are both Japanese..

It seems Rank123 is anti-globalism and against foreign influence in Tokyo led by Anglo-Saxons...

And it seems he assumes NihonKitty is non-Japanese and I am British(Anglo-Saxon) who are interferring with Japanese matters, but that assumption is wrong... we are both Japanese..
You are the one being the anti-globalisation.
Too different from Tokyo actually is.

:rofl:

So, where are you from Rank123? Are you Japanese?

^Nah, he's from the happy land of the trolls.

So, where are you from Rank123? Are you Japanese?
A good question, actually. I'm from outside the planet earth, and watching it over. I do not believe in the religions, because I may be the god.

Michael Jackson cannot see the reality but dreaming, should stop being proud of the devil that pollutes him. He's not there, and is the slave of it. It's not even Japan, what he boasts and does not even belong to this country. He's just filthy. I want to purify him to become the real Japanese. Clean up the foreign origined imperial family and the rightists invaded his land and, this country. They are the criminals. They have done to us the things should have never done, violating a prohibition against the human being. I am beautiful, because I have got the Roses in my hands, who have released my heart since I was born. Stop enjoying S&M. His brain is completely dead, manipulated by North Korean media, which is what he believes to be Japan. It's not the land of heaven, a poor beggar parasiting in the wealthy land. It's even better believing in culturally rich China than North Korea. It's the land of rubble, junkyard. He has still not realised, committing Kamikaze attack for the villain, who has devastated Japan, the Japanese people and the whole world.

please calm down..

But I am shocked by your racist statements, this type of talk like yours would never be allowed in Russian, American or European sections.
:lol:

You should read some of the Dutch threads on immigration and the Islam, some of the posts go much much further then NihonKitty's statements about Japanese nationalism and nobody is banned.

Let's stop this for a while :sleepy:

I took the time to delete most of the flaming posts you wrote last weekend :sleepy:
I don't want to see anymore tugs of war on the forum, or I'll ban you right away.

Arigatou

Arigatou gozaimasu

edit

Thread reopens, another troll enters... :ohno:

^Not another but the same one, over and over and over again.

That´s even more pathetic. His/her life must be really sad.

just wondering, hkskyline: what's your personal view on Tokyo's plans to re-establish itself as Asia's financial hub? can it succeed, or is there just too much competition from more internationalized centers like HK and Singapore? Does the Japanese govt actually do anything to make it more attractive to foreign companies?

i think so