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The Japanese government has set a goal to increase the share of stocks, investment trusts, and bonds in household financial assets to 40% by 2040 and has begun preparing relevant systems, the Nikkei reported.
According to the newspaper, this target is nearly double the 23% level projected for the end of 2025. The initiative is intended to accelerate the shift from "savings to investment" by revitalizing the corporate bond market and other measures.
This plan, which will be reflected in the financial strategy to be finalized this summer, aligns with the Sanae Takaichi administration's policy to expand investments in strategic sectors such as artificial intelligence (AI).
Setting a numerical target specifically for household assets is considered unusual.
According to the Bank of Japan, household financial assets totaled 2,351 trillion yen (approximately 20,800 trillion won) as of the end of last year, with cash and deposits accounting for 1,140 trillion yen (48.5%), nearly half of the total.
To achieve the goal, approximately 400 trillion yen in funds must flow into the investment market.
In response, the government has decided to refine the public investment trust system for unlisted stock investments and ease regulations on corporate bonds.
It will also establish a forum for public and private financial institutions to exchange views to expand the supply of investment funds for 17 strategic sectors, including AI.
Furthermore, the government plans to ease regulations on investments made through banks' investment subsidiaries. While investments in operating companies were previously limited to 5% of voting rights, this will be allowed up to 100% in cases such as management buyouts.
The plan aims to break down barriers between finance and industry, allowing bank funds to directly exercise voting rights to lead corporate management succession and structural improvements.
The related legislative amendments are aimed at being submitted to the Diet in 2027, and the government is also considering easing "firewall" regulations that restrict information sharing between banks and securities firms.
(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.