On the night of the 31st, the government announced an action plan for the “new capitalism” set by the Fumio Kishida administration. To expand the small investment tax exemption system (NISA), establish a system that enables the buying and selling of unlisted stocks for professional investors through a private trading system (PTS), and facilitate public offering for the purpose of mergers and acquisitions (M & A). It also includes content that emphasizes the financial market, such as reviewing the rules of.
The priority investment fields were 1) people, 2) science and technology / innovation, 3) startups, and 4) green transformation (GX) and digital transformation (DX). The government aims for a cabinet decision on June 7.
Prime Minister Kishida advocated a “new capitalism” aiming for a virtuous cycle of growth and distribution, and appealed for a shift from capitalism that emphasizes the market and shareholders. He has mentioned the strengthening of financial income taxation as well as the regulation of share buybacks, but it was not included in this action plan.
Nomura Research Institute Takahide Kiuchi Executive Economist dated 31stReportSo, regarding the economic policy of the Kishida administration, when the policy of doubling the asset income was announced in the lecture in early May, the attitude of “turning the stock market to the enemy” changed to the strategy of “turning the stock market to the side” at once. Andindicate.. “It is a policy that revitalizes the economy by making personal assets more risk-money, and it can be evaluated.”
The main contents of the action plan are as follows.
Formulation of “Asset Income Doubling Plan” for investment from savings
A comprehensive “asset income doubling plan” will be formulated at the end of this year. In addition to considering drastic reforms of NISA, we are considering reforming the individual defined contribution pension (iDeCo) system and creating an environment that facilitates asset formation for the child generation.
Develop a secondary market for unlisted stocks
In order to create an environment where startups can spend time growing unlisted, we will develop a system that allows private trading systems (PTS) to handle unlisted stocks for professional investors.
Review of public offering rules to facilitate M & A
While paying attention to investor protection, we will review the public offering rules by next summer to facilitate public offering for the purpose of M & A. It has also been pointed out that the self-regulation of the Japan Securities Dealers Association, which requires the implementation of M & A within one year in principle and the disclosure of alternative uses if not done, limits the public offering for the same purpose.
Strengthening disclosure of non-financial information to the stock market
Visualize non-financial information such as human capital and strengthen communication with shareholders. A reference human capital visualization guideline was announced in the summer of this year, and by the end of this year, the securities report under the Financial Instruments and Exchange Act was requested to include indicators and targets that express human resources development policies and internal environment improvement policies. Strengthen disclosure of non-financial information. The quarterly report under the Financial Instruments and Exchange Act will also be abolished and integrated into the quarterly financial statements of the exchange.
Ratio of intangible assets to market capitalization (2020)
Most corporate value in the United States is intangible assets
Source: New Capitalist Execution Plan
Increased investment in public capital in venture capital
The operational deadline of INCJ will be extended to 2050 to solve the problem of limited investment in startups that require time to grow. 2,000 trillion yen of personal financial assets will circulate in startup development, and long-term investment funds such as the Government Pension Investment Fund (GPIF) will circulate in venture investment and infrastructure development.
Examination of SPAC
We will proceed with the examination of the necessary system development when SPAC (special purpose acquisition company) is introduced, while giving due consideration to investor protection, based on global standards.
Creation of GX Economic Transition Bonds
In order to lead GX investment of more than 150 trillion yen for decarbonization, we will procure “GX Economic Transition Bonds (tentative name)” with the backing of future financial resources in advance to support private long-term investment. Inspiring ESG funds from around the world by combining new financial methods such as greens, transitions, and innovation finance with fiscal mobilization as a stimulus. It will be examined at the “GX Executive Meeting” that will be newly established in the official residence after the summer.
Prime Minister Fumio Kishida (May 5, at the British Prime Minister’s residence in London)
Photographer: Neil Hall/EPA/Bloomberg
Adhering to the framework of economic and financial management
Adhere to the three-arrow framework of bold monetary policy, agile fiscal policy, and growth strategies that encourage private investment. Utilize the fund according to the nature of the business and break the budget single-year principle.
Investing in science and technology / innovation
Positioning the fields of quantum, artificial intelligence (AI), and biotechnology as science and technology fields that are directly linked to national interests, formulate national strategies, and work together with the public and private sectors to drastically expand science and technology investment. We will consider how the tax system should be to promote R & D investment by private companies. A science and technology advisor will be set up at the Prime Minister’s Office to provide information and advice to the Prime Minister.
Formulated a five-year startup development plan
Positioning the development of startups as the key to promoting the dynamism and growth of the Japanese economy and solving social issues, a five-year plan will be formulated at the end of this year with a view to increasing the number by 10 times over five years. Also, clarify the command tower function for execution.
Investment in startups
The amount of investment by Japanese operating companies is low
Source: Secretariat of the New Capitalism Realization Headquarters
Realization of a digital society
Consider improving the environment for promoting Web 3.0 such as NFT (Non-Fungible Token) based on blockchain (distributed ledger) technology. We will consider measures that enable simple and unified processing of copyrighted material licenses, and will submit related bills to the ordinary Diet session next year. We will expand funding opportunities with security token bonds (digital bonds), provide investment opportunities to individuals, and promptly improve the system so that it can be handled by private trading systems.
Development of private arrangement legislation after corona
In order to facilitate the business restructuring of companies after the new corona, we will consider the legal system for new business restructuring and submit it to the Diet at an early stage.
Strengthening economic security
In order to secure a stable supply of important materials such as semiconductors, rare earths, batteries, and pharmaceuticals, we will analyze the risk of supply disruption in the supply chain and develop medium- to long-term support measures. We will strengthen projects for the practical application of cutting-edge important technologies such as AI, quantum, space, and ocean, aiming for a scale of 500 billion yen. We will examine how to provide support, including strengthening the capital of private companies, which will be responsible for the development and implementation of technologies that are indispensable for the next generation.