FinCity.tokyo

Updates from Tokyo’s expanding finance and startup ecosystem and the 55 members of FinCity.Tokyo.

ANNOUNCEMENT: New Executive Director, Mr. Tokio Morita, joined FinCity.Tokyo

We are honored to announce a new executive director, Mr. Tokio Morita, who brings four decades of experience in the field of finance to FinCity.Tokyo.
Mr. Morita has held various positions within the Financial Services Agency (FSA), including Director of Securities Business Division and Banking Business Division I, along with chairing the IOSCO Standing Committee 3 between 2007 to 2009 and sitting on the BCBS and Resolution Steering Committee of the FSB between 2012 and 2015. Prior to the FSA, Mr. Morita supported the Banking Bureau, Securities Bureau, and Financial System Planning Bureau of the Japanese Ministry of Finance (MOF).
With this wealth of experience, Mr. Morita will lead FinCity.Tokyo into its next exciting stage.

INTERVIEW:Tokyo’s fast-growing fintech ecosystem

Tokyo’s fintech ecosystem is thriving on the back of the ongoing digitization of finance in Japan. Makoto Shibata, head of fintech community FINOLAB since 2019, discusses the opportunities that await entrepreneurs from Japan and overseas.

Read the full interview here

KEY STORIES IN JAPANESE MEDIA

• Individual investors’ owned stock increased by 12%, highest rate of increase since the bubble period (NHK, July 7)
  According to the Japan Exchange Group, the number of domestic individual shareholders reached a record high of 83.59 million in the last fiscal year, up 12% from the previous year. This growth rate is the highest in 37 years, since the bubble era of fiscal 1987. The expansion of the NISA program and an increase in stock splits have contributed to the rise in the individual investor base. Meanwhile, financial institutions have been selling off their policy-held shares, with holdings by non-life insurance companies down by 34.5% and those by major and regional banks down by 18.7%.
   
• Investment Trust Association and Investment Advisor Association merge to become “Asset Management Association” with assets over one quadrillion trillion yen (Nikkei, July 1)
  The Investment Trusts Association and the Japan Investment Advisers Association have announced that they will merge in April 2026 to form a new organization called the Asset Management Industry Association. The new association will have around 900 member firms and oversee approximately 1,000 trillion yen in assets under management. Chairman Akiyoshi Oba emphasized that the asset management industry will stand alongside banking, securities, and insurance as a key sector.
   
• The Financial Services Agency establishes a new asset management division, 25 years after its inauguration; Financial Affairs Minister Kato “to strengthen cooperation among bureaus” (Nikkei, July 1)
  On July 1, 2025, the FSA celebrated its 25th anniversary and has taken steps to strengthen the supervision of asset management companies by establishing a new Asset Management Division within the Supervisory Bureau. As part of the push to make Japan a “nation of asset management,” Ms. Rena Nagayama has been appointed as the head of the Asset Management Division.
   
• Financial Services Agency sets up meeting party to discuss practical issues and strengthening the functions of board of directors (Nikkei, June 30)
  The FSA has established a panel of experts to strengthen the functions of corporate boards of directors, aiming to revise the Corporate Governance Code in the 2025 administrative year. This initiative is part of the “Action Program” announced on June 30, and will promote the effective use of cash and deposits as well as the disclosure of information related to human capital. The panel will also discuss practical issues such as the roles of independent outside directors and auditors, as well as their appointment and dismissal processes.

KEY STORIES IN INTERNATIONAL MEDIA

• Japan has been hit by investing fever (The Economist, July 10)
  Following the overhaul of the NISA system in 2024, five million new accounts were opened, with assets reaching 59 trillion yen—achieving the government’s target three years ahead of schedule. The Tokyo Stock Exchange accelerated corporate governance reforms, instructing listed companies to manage their businesses with greater awareness of capital costs and share prices. As a result, share buybacks and dividends have reached record highs, and cross-shareholdings have also fallen significantly.
   
• Tokyo Stock Exchange to launch AI document search for investors (Nikkei Asia, July 8）
  Japan Exchange Group (JPX) will launch, by the end of this year, an AI-powered corporate information search service for investors. Users will be able to enter questions into a dedicated website, and generative AI will analyze earnings reports and other disclosures from around 4,000 companies listed on the Tokyo Stock Exchange—sourced from the “TDnet” timely disclosure service—and display a list of relevant documents.
   
• Japan Exchange Group, Group CEO Yamaji says market reform is 20% of the way there (Nikkei Asia, June 27)
  In an interview with Nikkei Asia, Japan Exchange Group, Group CEO Hiromi Yamaji said the structural reforms at the Tokyo Stock Exchange are starting to yield results, and overseas investors are increasingly turning their attention to Japan. Japan’s stock market closed at a record high last July, and since the start of this year, the number of M&A deals, subsidiary sales, and shareholder returns—such as share buybacks and the sale of cross-held shares—have all reached new highs. However, Mr. Yamaji notes that there is still room for improvement in areas such as corporate ROE.
   
• Japan hits M&A record of $232 billion, driving Asia deals rebound (Reuters, June 26)
  In the first half of 2025, Japan marked a record-high $232 billion in M&A transactions, leading the recovery in deal activity across Asia. This sharp increase has been supported by corporate restructuring, shareholder activism, and a low interest rate environment. Major deals include the privatization of listed subsidiaries by companies such as Toyota and NTT, as well as a $40 billion funding commitment to OpenAI by SoftBank Group.

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