Newsletter_FINCITY.TOKYO UPDATE (August 2025)
28 AUGUST 2025Newsletters
Updates from Tokyo’s expanding finance and startup ecosystem and the 55 members of FinCity.Tokyo.
INTERVIEW:
How Tokyo can lead the “Asian model” for transition finance
Transition finance, which provides funding for steps toward decarbonization in the real economy, is gaining attention. Tomohiro Ishikawa, Chief Regulatory Engagement Officer at Mitsubishi UFJ Financial Group (MUFG) and a leading expert in the field, discusses how Tokyo can help unlock its potential.
EVENTS
On September 3, FinCity.Tokyo will host a business matching and pitch event for foreign fintech startups and Japanese companies at the Tokyo Innovation Base in Yurakucho. Please note that the event is in Japanese.
Tokyo Sustainable Finance Week 2025 is approaching! Held October 15-24 in central Tokyo, this annual event invites global experts to discuss the latest in sustainable finance. Don’t miss the Tokyo Sustainable Finance Forum on October 15 at Sankei Plaza and the Sustainable Finance Seminar for SMEs on October 24 at Jiji Press Hall. Updates to follow soon on the FinCity.Tokyo homepage.
OTHER
On July 3, The FinCity.Tokyo Transition Finance Forum was held as part of London Climate Action Week in collaboration with Jiji Press , City of London and The CityUK, to explore the latest trends of transition finance and the potential of Tokyo-London collaboration in the field.
View the archive here.
KEY STORIES IN JAPANESE MEDIA
- Accountability for companies hoarding cash: Governance code to be revised for the first time in five years (Nikkei Business, July 31)
The Financial Services Agency has announced that it looks to revise the Corporate Governance Code by June 2026. The revisions focus on companies’ hoarding of cash and deposits, and require accountability for the allocation of management resources.
- Tarek Chouman of BlackRock on Private Assets: “Investors should understand the inside works of funds” (Nikkei, July 29)
As interest in private asset investing spikes around the world, Tarek Chouman, Global Head of Client Business at BlackRock, points out that the Japanese market is experiencing “a major change, with increased interest from financial players around the world and an optimistic view of the future.”
KEY STORIES IN INTERNATIONAL MEDIA
- Japan’s Nikkei average tops all-time high on earnings optimism (Nikkei Asia, August 12)
Japan’s Nikkei stock average has surpassed its all-time high, driven by optimism over strong corporate earnings and a successful trade deal with the U.S. Additional support comes from ongoing governance reforms and attractive stock valuations, boosting investor confidence in the Japanese market.
- Popular Option Trade Spurs Japan Bourse to Seek New ETF Listings (Bloomberg, August 3)
A popular options strategy called call overwriting, where investors sell bullish options to earn premiums, has surged in Japan. In response, the Tokyo Stock Exchange is seeking to allow listings of actively managed ETFs that incorporate over-the-counter derivatives, aiming to capitalize on this trend and broaden investment options.
- Japan’s dealmaking machine revs up (The Economist, July 31)
Private equity activity in Japan is experiencing a significant revival, with the industry seeing increased dealmaking and profitable exits. Investor returns from successful divestments are attracting more capital, fueling further private equity transactions. This momentum positions Japan as a growing hub for private equity deals.
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