The Nikkei Stock Average has reached an all-time high for the first time in 34 years, approaching an unprecedented 40,000 yen level. Some observers point out that the growing interest in Japanese companies from foreign investors, who are increasing their presence in the Tokyo market, is due to the spread of corporate management that is conscious of capital efficiency.
Cross-shareholdings are stocks held by companies for the purpose of maintaining and strengthening relationships with business partners. The Financial Services Agency and the Tokyo Stock Exchange have stipulated in the Corporate Governance Code that the investment policy for cross- shareholdings should be disclosed.