The Japanese market is witnessing a historic sell-off of cross-shareholdings, presenting brokers with a potential windfall in fees. Nomura Holdings and Daiwa Securities Group are offering tailored solutions to assist clients in unloading these stocks, while Bank of America is leveraging its global network to facilitate the process. Mitsubishi UFJ Morgan Stanley Securities is also ramping up its equity financing team in anticipation of increased demand.
With pressure mounting from both the government and investors to enhance corporate governance, Japanese firms are looking to divest an estimated $320 billion worth of cross-shareholdings. Over a thousand listed companies, including industry giants like Toyota Motor, have committed to reducing these holdings. The transaction fees for brokerages could range from $2 billion to $5 billion, according to Bloomberg Intelligence analyst Hideyasu Ban.
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