In downturns the natural instinct of companies, investors
and regulators is to retrench and protect. Japan has different
tactics. International investors have run scared, causing
foreign direct investment to drop by 63% in the first half of
the year (compared to the same period in 2008). And at the
corporate level, there are now only 15 foreign companies on the
Tokyo Stock Exchange. But Japan is not turning in on
Rather, the Tokyo Stock Exchange has chosen this moment of
upheaval to launch an initiative to bring international
investors and issuers back to Japan.
While foreign investment has gradually increased in recent
years, the number of foreign companies on the Tokyo Stock
Exchange peaked at 127 in 1991. There has been steady decline
since then. So the TSE has launched a new professionals market
with flexible, foreigner-friendly regulation to try and boost
Japan's international reputation as...