The CEO of Japan Exchange Group (JPX) recently expressed optimism for the financial markets in 2025. Reflecting on the past year since the launch of the NISA scheme, which has seen a gradual shift from savings to investments in the Japanese economy, there has been notable progress. JPX has actively facilitated this transition by creating platforms that simplify investment processes for individuals.

In response to the increasing interest in investment, JPX initiated discussions on enabling smaller investments through the Study Group on Small-Size Investments. Additionally, measures such as extending trading hours and introducing a Closing Auction Session have been implemented to enhance trading opportunities and transparency in price formation.

While acknowledging the positive steps taken by companies in response to calls for improved management practices, the CEO emphasized that further reforms are essential. The ultimate goal is to cultivate a market culture where listed companies prioritize enhancing their long-term corporate value by actively considering capital costs and stock prices. JPX is committed to urging listed companies to take action towards this objective and to enhance the market environment to attract both domestic and international investors.

Looking ahead, the CEO highlighted various potential risks in the market environment, including policy shifts under the new Trump administration and geopolitical uncertainties in regions like Ukraine, the Middle East, and East Asia. Despite these risks, the Japanese economy is showing signs of progress, with efforts to combat deflation, rising prices, and increasing wage growth.

Stakeholders, including Japanese and foreign investors, have shown support for the government’s initiatives to develop the economy and financial markets through reforms such as corporate governance enhancements and the Startup Development Five-year Plan. There is a keen interest in the overall performance of companies, corporate governance reforms, and sustainable growth initiatives.

As the Year of the Snake unfolds in 2025, symbolizing transformation and growth, the CEO anticipates positive market trends. Drawing on Japanese financial traditions that associate snake years with market peaks and renewal, the CEO looks forward to witnessing the market shed its old skin and emerge stronger. The vision for 2025 is to further enhance the Japanese financial and capital markets for the benefit of all participants.

In conclusion, the CEO’s message conveys a sense of optimism and determination to navigate the challenges and opportunities that lie ahead in the financial landscape of Japan. With a focus on fostering a culture of long-term value creation and market attractiveness, JPX aims to play a pivotal role in shaping the future trajectory of the financial markets.