The Bank of Japan continues to purchase ETFs = exchange-traded funds as part of large-scale monetary easing measures.
The Bank of Japan's Governor Kuroda revealed at the House of Councilors Budget Committee that the market capitalization of ETFs held by the Bank of Japan accounts for 7% of the total shares of the first section of the Tokyo Stock Exchange, causing distortion in the market. I asked for understanding that it was not something that would make me.
In this, Governor Kuroda commented on the BOJ's continued purchase of ETFs at risk of price declines, saying, "We support economic activities so that unstable movements in financial markets do not lead to psychological deterioration of companies and households. ", He emphasized the position that the purpose is to support the economy.
Furthermore, after clarifying that the market capitalization of ETFs held by the Bank of Japan accounts for 7% of the total stocks of companies listed on the First Section of the Tokyo Stock Exchange, "I think that the stock market will be distorted or affected. No. I have no idea to stop buying. "
In addition, Governor Kuroda said that the level of the Nikkei Stock Average, which is the turning point between profits and losses when looking at the ETFs held as a whole, is "about 21,000 yen", and is about 12 trillion yen to 13 trillion yen. It is also estimated that there will be unrealized profits, and that the BOJ will pay about 200 billion yen to asset management companies in connection with the purchase.