Japanese Stocks Still Cheap, Oasis CIO Fischer Says

The video discusses the current state of Japan's market, highlighting significant changes in corporate governance, increased profitability, and shareholder engagement. It examines the role of domestic and foreign investors, noting a recent shift towards foreign investment. The impact of Shinzo Abe's policies, particularly the 'three arrows' strategy, is analyzed, with a focus on corporate governance reforms. The Tokyo Stock Exchange's new initiatives to encourage companies to improve their market performance are also covered, including the emphasis on trading above book value and openness to mergers and acquisitions.

What recent trend has been observed among foreign investors in the Japanese market?

• They have been investing heavily in Japanese real estate.

• They have shown no interest in the Japanese market.

• They have started to become net buyers after years of selling.

• They have been consistently selling Japanese equities.

What was a significant aspect of Shinzo Abe's 'three arrows' policy?

• Expansion of the agricultural sector.

• Focus on increasing exports.

• Emphasis on corporate governance and reform.

• Reduction of national debt.

How have shareholder proposals changed in recent years in Japan?

• They have been completely ignored by companies.

• They have increased, with more success against management.

• They have remained the same.

• They have decreased significantly.

What is the Tokyo Stock Exchange encouraging companies to achieve?

• Avoid any form of M&A activity.

• Focus solely on domestic investors.

• Trade above one times price to book.

• Trade below one times price to book.

What new guidance has been provided regarding M&A in Japan?

• Companies should avoid all M&A activities.

• Companies should only engage in domestic M&A.

• M&A activities should be limited to the technology sector.

• Companies should open up to effective M&A, including hostile takeovers.