Reported 5 months ago
As Japan moves to unwind its extensive cross-shareholding practices amid calls for improved corporate governance, brokerage firms are poised to gain significantly from this shift, with potential fees ranging from $2 billion to $5 billion. Major brokerages like Nomura and Daiwa are ramping up efforts to facilitate these block trades, seeing an increase in competition along with a growing interest from both domestic and international investors. The ongoing trend indicates a promising outlook for these firms as the Japanese stock market grows, despite concerns over margin erosion due to stiff competition and the complexities of managing shareholder relationships.
Source: YAHOO