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Suga’s Cabinet ‘Accelerating Digitization, Tokyo International Financial City’ Political Successes
Concerns about the loss of confidence in Japan are increasing as the Tokyo Stock Exchange under the Japan Stock Exchange Group (JPX) suffered a total suspension of transactions due to a system failure for one day.
This situation is particularly alarming as Prime Minister Yoshihide Suga, who took office last month, emphasizes a policy to accelerate digitization, noting that Japan is lagging behind its main rivals.
In addition, it is noted that the Japanese government and the Tokyo Metropolitan Government’s ‘International Financial City’ initiative to turn Tokyo into a financial center in Asia as a trigger for the Hong Kong National Security Law incident was also affected.
In an editorial on the 2nd, the Yomiuri Shimbun pointed out that the incident was a mistake that undermined confidence in the Japanese capital market.
Yomiuri said: “The market capitalization of the shares listed on the Tokyo Stock Exchange is the third largest in the world, and foreign investors account for more than half of the commercial value.”
The newspaper said it was difficult to understand why the lessons could not be used, saying that the Tokyo Stock Exchange had several problems in the past and that some shares were suspended due to a failure in the connection system with securities companies. .
Yomiuri argued that in such a situation, there was an atmosphere in which the problem would continue and investors around the world could neglect it, and insisted that a full inspection of system weaknesses should be carried out to prevent a recurrence.
Nihon Keizai Shimbun (Nikkei) also criticized “The situation where all stocks cannot be traded all day on one exchange, which can be said to be the heart of the capital market, is a mistake unprecedented in the past and undermined confidence in the Japanese market. ” .
Nikkei said, “Even if a system doesn’t move, you need to make sure you have a structure that complements it with a separate backup system,” he said. “It’s hard to understand why it didn’t work this time.”
The exchange also stressed that it is necessary to clarify who is responsible through a thorough investigation of the cause to prevent this from happening again.
Nikkei highlighted the importance of an environment where people can trade confidently in the financial market, noting that even if the infrastructure is unstable, it will be difficult to realize the international financial center promoted by the Tokyo Metropolitan Government.
The Sankei Shimbun also has voices that expect Tokyo to be an Asian international financial center after the Hong Kong crisis, but stressed that it will be difficult to gain trust if such problems are repeated.
The Tokyo Shimbun defined the incident as a situation that shook the economic base and called for a full investigation of the cause.
The newspaper noted that if there was a problem with the system and the reason why the backup function did not work is not clearly clarified, it would lead to a drop in confidence in the Japanese market, as investors fear that the situation will repeat itself. .
Meanwhile, the Yomiuri Shimbun reported in a separate article that there is concern that the ambitious policies of Suga’s cabinet to accelerate digitization within the government and the ruling party due to an unusual system failure occurred on the Tokyo Stock Exchange, which is the core of Japanese financial services. .
/ yunhap news
