Japan Aims to Boost Stocks, Bonds in Household Assets

Tokyo, July 21 (Jiji Press)–The Japanese government said Tuesday that it aims to increase the proportion of stocks, investment trusts and bonds in household financial assets in the country to 40 pct by 2040 from 23 pct as of the end of March 2025. The government plans to support households’ asset formation through the Nippon Individual Savings Account, or NISA, tax-exempt, small-lot investment program and the iDeCo defined-contribution personal pension program. It will also review government bonds for individual investors to make them more attractive as investment options. These plans are part of a new financial strategy that the government laid out to promote growth investment. The strategy called on the Government Pension Investment Fund to enhance the sophistication of risk management and investment to promote alternative investments, including in unlisted stocks. To expand the supply of financing to 17 strategic fields designated by the administration of Prime Minister Sanae Takaichi, the government will make it easier for banks to invest in companies and ease regulations on their lending to firms in the same corporate group. It will consider extending tax benefits to smaller companies that receive significant investment from regional banks. The Financial Services Agency will establish a council to discuss the use of blockchain technology, in anticipation of the widespread adoption of artificial intelligence. The strategy also said the public and private sectors will work together to address the potential misuse of the Claude Mythos advanced AI model. END [Copyright The Jiji Press, Ltd.]