Purpose of Activating Inflow of Individual Investors
The Tokyo Stock Exchange in Japan is planning to discuss easing the 'minimum purchase of 100 shares rule' to promote individual investment, Yomiuri Shimbun reported on the 12th.
In Japan, you must purchase at least 100 shares to buy stocks. Therefore, the minimum investment amount in Japanese stocks is the price of one share multiplied by 100. For example, Toyota Motor Corporation, which ranks first in market capitalization on the Tokyo Stock Exchange, closed at 2,447 yen (about 22,300 KRW) on the 9th, so purchasing this company's stock requires 244,700 yen (about 2.2 million KRW). The stock price of Fast Retailing, the parent company of Uniqlo, is 39,640 yen (about 368,000 KRW), so you need 3,964,000 yen (about 36.8 million KRW) on hand.
The Tokyo Stock Exchange plans to review the trading unit set at 100 shares starting in October and aims to present specific measures and issues related to the minimum investment amount around March next year. Yomiuri suggested lowering the minimum investment amount by reducing the trading unit and stock splits. In this regard, telecommunications company NTT split one share into 25 shares in July last year. NTT's current stock price is 146 yen (about 1,360 KRW).
Yomiuri evaluated the easing of the minimum purchase rule by stating, "Japan faces the challenge of a high ratio of cash and deposits in household financial assets and low investment in securities," and added, "there is a possibility that individuals will actively engage in asset formation." However, it also pointed out that as the entry barrier lowers and more individual investors enter, listed companies in Japan may face increased costs and efforts when holding shareholder meetings.
Meanwhile, the Nikkei 225, Japan's representative stock index, closed at 35,020 on the 9th, up 0.56% from the previous session. Today is a public holiday in Japan, 'Mountain Day,' so the market is closed.
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