According to media reports, investors are currently paying attention to these four measures:

1、 New NISA

At the beginning of this year, the Japanese government officially implemented a new "Non taxable Small Investment System" (NISA).

The original NISA implemented tax exemption for investment returns on stocks, investment trusts, etc. within a certain limit for a certain period of time. Starting from 2024, the coverage of the new NISA will be further expanded and the tax exemption will be permanent.

In addition, the annual investment amount of "cumulative NISA" has expanded to 1.2 million yen (approximately 59000 yuan), which is three times the previous amount, and the regular model has doubled to 2.4 million yen. Yuji Kusunoki, President of Lotte Securities, said that the new NISA seems to have attracted more retail investors.

An analyst at SMBC Nikko Securities wrote in a report that if the investment scale expands to the same level as the government's goals, there may be about 2 trillion yen (approximately 98.4 billion yuan) flowing into the Japanese stock market annually through the plan.

2、 Disclosure of Capital Efficiency Plan

In March last year, the Tokyo Stock Exchange issued a notice on meeting the requirements of focusing on capital costs and stock price operations, which further promoted the expectation of improving the valuation of the Japanese stock market at the institutional level. In terms of valuation, the "Requirements" focus on providing explanations and improvements for listed companies with a price to book ratio below 1 times.

The specific methods include: firstly, stock repurchase, encouraging market value management through stock repurchase to improve price to book ratio and ROE; Secondly, timely adjustment of corporate strategy; Thirdly, pay attention to the return on capital; The fourth is to actively create and institutionalize channels for information disclosure. The exchange has warned that companies that fail to effectively utilize their capital may face delisting prospects as early as 2026.

On Monday (January 15th), the Eastern Stock Exchange announced the first list of companies to respond to the measures. Afterwards, the list will be updated around the 15th of each month, which is expected to bring new impetus to the Japanese stock market.

Last July, the Japan Stock Exchange Group also launched a new stock index - the JPX Prime 150 Index. Analysis suggests that this index is designed to benchmark against the S&P 500 index in the United States.

3、 Reducing financial reporting to relieve pressure on listed companies

In November last year, the Japanese parliament passed an amendment to the Financial Commodity Quotations Act, which no longer requires listed companies to release financial reports for the first and third quarters.

Analysis indicates that companies still need to prepare quarterly business performance reports. Due to the issue of duplicate content between income reports and financial reports, this new law is expected to reduce the burden on listed companies.

For investors, the market focus will be more on quarterly earnings reports. The Eastern Stock Exchange also requires the company to disclose the earnings and cash flows of each business department, which will make the operational situation more transparent.

4、 Extend trading time by half an hour

Last September, it was mentioned that the Japan Stock Exchange Group (JPX) issued a notice on its official website stating that the Tokyo Stock Exchange (TSE) had officially decided to extend trading hours.

Starting from November 5, 2024, the end time of on exchange auction trading on the Eastern Stock Exchange will be extended from the current 3:00 pm to 3:30 pm.

Masanari Takada, derivatives strategist at JPMorgan Securities Japan, said that for European "early birds" and Asian hedge funds, they can trade during periods of ample liquidity, which is valuable for them.