CBANewsletter-Jun

Japanese Stock Market Soars: Defying Odds and by Victor Wan Attracting Investors A resurgence in the Japanese stock market offers new opportunities for investors as the nation tackles inflation and corporate governance challenges, outpacing the S&P 500 and overcoming demographic hurdles. The Current Business Affairs Newsletter (June Issue) of The Business Students’ Union, HKUSTSU, is taking you through the reawakening of Japan Outperforming the Competition Furthermore, Japan's highly liquid market enables it to absorb funds moving away from US and The Japanese stock market has surged nearly 30% Chinese stocks. this year, outshining the S&P 500, as companies bet on lasting changes in corporate governance. Pull Factors The Nikkei has reached heights not seen since the early 1990s, just before Japan fell into the Lost Attractive pull factors have also boosted Japanese Decade. stocks. Japan has long struggled with deflation, but recent CPI growth of around 3% indicates a Push Factors return of inflation, stimulating spending without reaching excessive levels like the US's 8%. Japan's The struggling economies of other countries central bank has not yet considered raising interest contribute to the rise of Japanese stocks. The rates, allowing the country to maintain low- United States faces issues such as the debt ceiling, interest rates in comparison to Western countries inflation, and economic recession, while China, that benefit the stock market. despite a 5% GDP growth, deals with uncertainties like an uneven economic recovery and rapidly Moreover, Japan is taking steps to improve changing policies creating uncertainty and corporate governance, aiming to increase company prompting funds to seek alternatives. These value and shareholder returns. Historically, challenges make Japan, the world's third-largest Japanese firms have hoarded cash and held stakes economy, a more attractive investment destination. in one another, leading to depressed valuations.

However, over 150 companies have recently Despite the stock market's success, Japan's announced $15 billion in share buybacks, with economy faces significant hurdles, such as an more unwinding cross-holdings. These moves aging population, with nearly one-third of its signal that Japanese firms are using capital more citizens over 65, and a shrinking labour force. The efficiently and adopting more transparent, government's restrictive stance on immigration investor-friendly practices. Compared to China's exacerbates these issues. As Japan's stock market latest policies that worry foreign investors, Japan's continues to thrive amid global economic cheap valuations, like price-to-book ratios below uncertainty, investors are closely watching to see if one, reveal untapped potential. the country can maintain its momentum and overcome the challenges it faces. Overcoming Challenges Your Feedback Warren Buffett's recent endorsement of Japanese conglomerates Itochu, Marubeni, Mitsubishi, Your feedback will help a lot to improve our CBA Mitsui, and Sumitomo has boosted investor Newsletter, if you have any enquiries or confidence in Japan's stock market. In April, suggestions, please do not hesitate to contact The Buffett announced plans to invest more in Executive Committee of the Union through email Japanese companies, and foreign investors have by [email protected] or by mail to Mailbox #15, LG5 since poured money into Japanese stocks, with Student Amenities, The Hong Kong University of some avoiding China due to rising tensions Science and Technology, Clear Water Bay, between Beijing and Washington. Kowloon, HK. source: Anna Cooban, Japan’s long-suffering stock market is back. This boom may have ‘staying power’, May 24 2023, https://edition.cnn.com/2023/05/24/investing/japan- stock-market-33-year-high/index.html Vivek Shankar, Investors Are Putting Big Money Into Japan Again. Here’s Why., June 14 2023, https://www.nytimes.com/2023/06/14/business/japan-stock-markets.html 你的段落文字