Japan Sets Goal to Increase Stocks and Bonds in Household Assets to 40% by 2040

The Japanese government has set a target to increase the proportion of stocks, investment trusts, and bonds in household financial assets to 40% by 2040 and has begun preparing relevant systems, the Nihon Keizai Shimbun reported.

According to the newspaper, this is nearly double the 23% level expected at the end of 2025, and the initiative is intended to accelerate the shift from "savings to investment" by revitalizing the corporate bond market.

This plan, which will be reflected in the financial strategy to be finalized this summer, is aligned with the Sanae Takaichi administration's policy to expand investments in strategic sectors such as artificial intelligence (AI).

Setting a numerical target specifically for household assets is considered unusual.

According to the Bank of Japan, household financial assets totaled 2,351 trillion yen (approximately 20,800 trillion won) as of the end of last year, with cash and deposits accounting for 1,140 trillion yen (48.5%), nearly half of the total.

To achieve this goal, approximately 400 trillion yen in funds must flow into the investment market.

In response, the government has decided to reorganize the public investment trust system for non-listed stock investments and ease regulations on corporate bonds.

It will also establish a forum for public and private financial institutions to exchange opinions to expand the supply of investment funds for 17 strategic sectors, including AI.

Furthermore, the government plans to ease regulations on investments made through banks' investment subsidiaries. While investments in business companies were previously limited to 5% or less of voting rights, this will be allowed up to 100% in cases such as management buyouts.

The plan is to break down barriers between finance and industry so that bank funds can directly exercise voting rights to lead corporate management succession and structural improvements.

The relevant legislative amendments are aimed at being submitted to the Diet in 2027, and the government is also considering easing "firewall" regulations that restrict information sharing between banks and securities firms.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.