BOJ Becomes Top Investor of Japanese Stocks

Politics

Tokyo, July 2 (Jiji Press)--The Bank of Japan has become the largest investor in the country's stocks, replacing the Government Pension Investment Fund, it was learned Friday.

GPIF data released Friday said it held domestic shares worth 47,227.3 billion yen in market value as of the end of March, less than the BOJ's holdings of 51,509.3 billion yen through exchange-traded funds.

Six months before, the GPIF was the top investor in Japanese stocks. The BOJ outstripped the fund for the first time as it actively bought ETFs as part of measures to support financial markets amid the novel coronavirus crisis.

But, in response to criticism about the large shareholdings of public institutions, the central bank has been slashing its ETF purchases since April this year.

"The GPIF basically will not overtake the BOJ unless it buys shares aggressively," said Shingo Ide, senior analyst at NLI Research Institute.

[Copyright The Jiji Press, Ltd.]

Jiji Press