The Japanese stock market is on fire, and the financial sector is also heating up, with roadshows being held one after another
The Japanese stock market is booming, attracting a large number of foreign investors. In order to meet customer demand, major Wall Street banks have increased their roadshow efforts, directly hiring Japanese analysts to interact with clients face-to-face and attract them to invest in the Japanese market. Companies like Citigroup and Morgan Stanley have also taken similar measures. In addition, Bank of America held conference calls where Japanese analysts shared the best stock investment recommendations. With the recovery of the Japanese economy, the professions of analysts and traders in the financial industry are becoming more active
How hot is the Japanese stock market? Just last week, foreign investors collectively purchased ¥11.8 trillion (approximately $77 billion) worth of Japanese stocks, setting a record high since 2013.
The Japanese market has become a global favorite, with capital pouring into Japan. As the Japanese stock market recovers, the financial industry in Japan is creating more job opportunities, and there is an increasing demand from investors to deeply understand the Japanese market.
To meet customer demands, major Wall Street banks are pulling out all the stops.
Citigroup directly hired Japanese analysts for face-to-face interactions with clients. Kota Ezawa, Head of Research at Citibank Japan, stated that the overseas marketing activities of Citigroup's Japanese securities department have grown more than fivefold in 2023 compared to 2022, and this momentum is expected to continue in 2024.
Citigroup also organized "Japan Day" events globally. During these events, Citigroup's Japan team leaders, analysts, strategists, and traders discussed investment opportunities from various perspectives such as stocks, fixed income, and foreign exchange.
Morgan Stanley is also not backing down. Last month, the brokerage firm, a joint venture with Mitsubishi UFJ Financial Group, sent over 30 researchers based in Tokyo to visit Hong Kong and Singapore for a week. The purpose of this visit was to meet clients face-to-face through the company's stock analysts, economists, and to introduce its strong research team to clients, bridging the gap with clients.
Bank of America launched a new quarterly conference call in January targeting institutional investors in the United States, Asia, Europe, the Middle East, and Africa. During the call, Japanese analysts shared their top stock investment recommendations. According to a spokesperson for Bank of America, this conference call was warmly welcomed by investors.
As Japan gradually emerges from the "Lost Decades," the recovery of the Japanese economy is bringing new vitality to analysts and bond traders in the financial industry, while also creating more business opportunities for securities firms and other research service providers.
Institutional investors are seeking high-quality market research to help them make wiser investment decisions. According to consultancy firm Coalition Greenwich, institutional investors in Japan are expected to use more research service providers this year, as they have been reducing the number of research service providers used annually since 2019.
Tarun Hariharan, the firm's research manager, stated, "We will closely monitor whether this recovery trend will translate into increased trading expenses, thereby boosting the revenue of securities firms and other research service providers."
Bloomberg Intelligence analyst Hideyasu Ban said, "There is a growing interest in relearning about Japanese companies and markets. However, to sustain this interest and translate it into actual investment growth after investors complete the initial learning phase, the Japanese market itself needs to continue demonstrating its value and attractiveness."