Partner Insight: Will Hostile Takeovers Boost Japan's Appeal In 2024?

After delivering decades of disappointing returns, the Japanese stock market is on track to be one of the best performing in 2023.

This turning point in the country's fortunes is significant as for so long it has struggled to return to form after the so-called asset price bubble of the 1980s and the prolonged deflationary period that followed.

But now, almost a decade after a series of corporate reforms, Japanese companies are finally listening to their shareholders and changing the structure of their business.

The latest changes include the release of fresh guidelines addressing corporate takeovers with a focus on best practices, which were released by the government earlier this year. Companies must now consider any bid that comes in seriously and react accordingly.

Whilst some investors believe 2023 will be remembered as a year when hostile takeovers became official in Japan; questions remain as to what impact this will have on corporate valuations and shareholder returns in 2024.

Investment Week explores how this shifting mindset around corporates structures is helping Japan to rally and what the future for the region holds. Click below to watch. 

 

 

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