[ad_1]
[Tokio, 24, Reuters]- The Bank of Japan announced on the 19th that it has demonstrated for the first time the effect of reducing the risk premium associated with buying exchange-traded funds (ETFs), and experts have expressed their appreciation. However, there are concerns that by unifying the buying targets at the TOPIX-linked rate, small-cap stocks are likely to rise and new stock prices to distort. The corporate governance concerns have not been resolved and the Bank of Japan is expected to become the largest shareholder in FAST RETAILING. The Bank of Japan will switch to a new method starting in April, but market officials have said it is necessary to stabilize the market to reduce purchases.
<"Prima de riesgo" mostrada por primera vez>
This time, the Bank of Japan has listed two of the various indicators and data that capture the equity market risk premium, the range of change in the equity risk premium included in the option price, and the range of change in the yield margin of individual populations The effect was verified. It shows that the equity market risk premium is significantly reduced with the purchase of ETFs, and “it is suggested that the more volatile the market is and the larger the purchase scale, the greater the effect per unit of purchase,” I concluded.
Professor Kimie Harada from Chuo University College of Commerce said: “I can positively assess how the risk premium should be understood and the effect that the Bank of Japan believes it should be.”
In what situations will the Bank of Japan move to buy ETFs, so far Vice President Masayoshi Amamiya’s response to the Diet in May 2019 showed the difference in yield between government bonds and stock prices, PER (ratio price-earnings), PBR (price-to-book value), reference has been made to five of the VIX index and the information from interviews with market participants, but the one that has made the difference in the market is that the BOJ will buy ETF when the TOPIX falls 0.5% or more. in the previous session. It is a ruler”. However, there are days when the Bank of Japan does not buy according to this rule at the end of February, and there is a movement in the market to find new rules.
The Bank of Japan decided on 19 to unify the ETF purchase targets at the TOPIX-linked rate, but new problems have also arisen.
Haruhiko Kuroda, the Governor of the House of Councilors, explained in the Finance and Finance Committee of the House of Councilors on the 22nd that “only TOPIX-linked stocks, which have the highest number of index components, were selected for the influence of individuals stocks would be minimized. “
However, Professor Harada from Chuo University said that by unifying TOPIX-linked stocks, the prices of stocks with a low free float rate among the stocks that make up the Nikkei Stock Average, such as Fast Retailing and Advantest, are “they will reduce in the future.” However, he notes that “the impact on small-cap stocks will continue to be greater.”
Even if the Nikkei 225 index type is not bought, the indirect holding index of individual shares of the BOJ will continue to increase, albeit moderately, as the TOPIX type purchase continues. The Bank of Japan is about to become the largest shareholder in First Lite.
According to Shingo Ide, principal investigator at the Nisseikiso Research Institute, if the TOPIX type is bought for another 6 trillion yen, it will exceed the ownership ratio of President and President Tadashi Yanai of 21.58%.
However, this time the policy inspection left unresolved the negative effects on corporate governance caused by the large number of ETFs held by the Bank of Japan, noted by market participants and experts.
Regarding the impact on corporate governance, the Bank of Japan said: “The voting rights of the individual shares that make up ETFs are treated appropriately by investment trust management companies that have announced acceptance of the Administration Code ( Institutional Investor Code of Conduct) “. has become, “he repeated the conventional view.” In the future, as the balance of held ETFs increases further, these concerns may increase, “he said, but did not provide a concrete solution.
Professor Harada from Chuo University said: “Because the Bank of Japan never sells by buy and hold, stock prices are unlikely to fall, and I think many managers think it is safe. securities, investors are companies as investors. It plays the role of management supervision, but the Bank of Japan is not aware of these points. “
In the marketplace, “the Bank of Japan leaves governance oversight to the management company, but the management company may not be interested in monitoring management,” said one analyst.
As of April 1, the Bank of Japan will unify the ETF purchase targets at the rate pegged to TOPIX. Up to 12 trillion yen a year, the purchase amount will be reduced when the market is calm, and if the market becomes significantly unstable, large-scale purchases will be made and policy inspections will be conducted to look for enthusiastic purchases. ..
Mr Ide from the Nisseikiso Research Institute said: “It is just the first step in reducing purchases to zero in the future. Whether the purchase amount actually decreases or not depends on the market environment.”
Takahiko Wada Edited by Shinichi Uchida
