New Disclosures on Shareholdings Among TOPIX Core 30
Tighter regulation putting cross-shareholdings up for reconsideration
July 15, 2010
Summary
◆Firms that held their general shareholder meetings in June raced to update financial statements and other regulatory filings to comply with regulation enacted on 31 March (under Cabinet Office Ordinance on Disclosure of Corporate Affairs). This report provides an overview of disclosures on shareholdings at 28 of the TOPIX Core 30 constituents.
◆The group averaged 526 strategic stock holdings and a weight in consolidated net assets of 15%. The average number of reasons for those holdings was 2.8.
◆The FSA will begin phasing out transitional guidelines from FY10, meaning investors can likely expect more detailed information on shareholdings going forward. The increased scrutiny could provide a catalyst for reshuffling, in our view, as firms take stock of less beneficial arrangements.
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