Newsletter_FINCITY.TOKYO UPDATE (August 2026)
Updates from Tokyo’s expanding finance and startup ecosystem and the 65 members of FinCity.Tokyo.
Special Feature on Reuters Plus
How Tokyo is reasserting itself as a global financial center
As Japan advances its vision of becoming a premier asset management hub, Tokyo is reasserting its position on the global financial stage. Drawing on discussions from a FinCity.Tokyo forum in New York, this article examines regulatory reforms, financial innovation, and renewed market dynamism, while shedding light on Tokyo’s evolving ambitions and challenges as an international financial center.
read article on Reuters Plus
Special Interview
Interview: Strengthening the Foundation for Tokyo-Paris Financial Cooperation
FinCity.Tokyo Chairman Hiroshi Nakaso met with Banque de France’s representative in Japan, Arthur Sogno Pees, and his successor Quentin Dufresne to discuss the growing financial cooperation between Paris and Tokyo, which gained renewed momentum with Banque de France becoming a FinCity.Tokyo member in June 2026.
View the full interview here:
Other Updates
The “UK-Japan Transition Plan Dialogue” Joint Statement was presented to Commissioner Ito of the Financial Services Agency
FinCity.Tokyo has been conducting the “UK-Japan Transition Plan Dialogue,” an ongoing dialogue between the UK and Japan, since the first UK-Japan Transition Finance Forum held in July 2025, in order to promote initiatives related to sustainable finance. This dialogue has been co-hosted three times to date by the International Transition Plan Network (ITPN), the University of Oxford, and FinCity.Tokyo, and has helped expand knowledge-sharing and networks related to sustainable finance.
As an outcome of this dialogue, we compiled the “UK-Japan Transition Plan Dialogue Joint Statement” concerning its findings and recommendations on June 23, and presented it to Commissioner Ito of the Financial Services Agency on July 27. Commissioner Ito responded positively, remarking that he would study it carefully.
About the Joint Statement
FinCity.Tokyo Hosts 1st Member Networking Event for FY2026
On July 24, 2026, FinCity.Tokyo held its “1st FinCity.Tokyo Member Networking Event” for this fiscal year.
Themed around the Tokyo Metropolitan Government’s Global Financial City Strategy and FinCity.Tokyo’s “3rd Medium-Term Business Plan (FY2027–2029),” the event gathered representatives from member organizations spanning a wide range of industries and sectors within Tokyo’s financial ecosystem. Sharing first-hand insights from their daily work, participants addressed key challenges and outlined concrete actions to enhance Tokyo’s international competitiveness.
Workshop discussions
During the workshop, discussions focused on four key priority themes to drive Global Financial City Tokyo toward its next leap forward:
・Domestic and international financial promotion
・Clustering of financial players
・Sustainable finance
・Promotion of fintech
The valuable feedback and ideas gathered from participants will be reflected in future initiatives by the Tokyo Metropolitan Government and in FinCity.Tokyo’s upcoming “3rd Medium-Term Business Plan,” which is currently being finalized.
We extend our sincere gratitude to everyone who attended.
Please see here for more details:
Key Stories in Media
Japanese Media
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- Government and BOJ move to build blockchain infrastructure to enable instant settlement of government bonds and stocks (Nikkei, 8/26)
As early as the beginning of 2027, the government and the BOJ plan to compile a development plan for a next-generation settlement infrastructure concept to allow cash transactions for government bonds and stocks to be completed instantly, 24 hours a day. - Tax incentives for gains from corporate business sales, conditional on use for acquisitions in growth sectors: METI proposal (Nikkei, 8/25)
The Ministry of Economy, Trade and Industry has proposed the creation of a “Tax System to Promote Business Portfolio Transformation and Strengthening,” to encourage business portfolio reform that expands divisions with stronger capital efficiency. - FSA budget to reach record high: FY2027 budget request to fund AI and monitoring investment (Nikkei, 8/24)
The FSA is seeking a record FY2027 budget of about ¥40 billion to boost AI, cybersecurity, and financial-sector monitoring.
- Government and BOJ move to build blockchain infrastructure to enable instant settlement of government bonds and stocks (Nikkei, 8/26)
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English Media
- Japanese bond funds see record inflows as yields attract European buyers (Reuters, 8/25)
With Japan’s rising interest rates pushing up bond yields to an attractive level for the first time in decades, Japanese asset managers are scrambling to launch yen bond funds to meet renewed interest in Japanese debt among overseas investors. - Japan eyes tax breaks for non-core business sales in governance reform push, sources say（Reuters, 8/24）
Japan’s government is considering tax breaks on gains from sales of non-core businesses, a move that could accelerate long-delayed corporate restructuring and spur industry consolidation. The plan could become one of Prime Minister Sanae Takaichi’s most significant initiatives to advance corporate governance reform. - Japan’s Earnings Surprise Analysts to Fuel Bets for Broad Rally (Bloomberg, 8/19)
Japanese companies posted their largest earnings beat in five years despite soaring oil costs, fueling hopes that strong profit growth can broaden the market rally. Some 71% of local firms reported profits that exceeded analyst forecasts, with aggregate net income at the 500 biggest companies topping ¥21 trillion and profitability improving sharply. - Copyright © 2026 FinCity.Tokyo. Distributed for FinCity.Tokyo by Kreab K.K.