The Bank of Japan should stop buying exchange-traded funds as the purchases will ruin the stock market’s ability to allocate capital efficiently, according to the chairman of Commons Asset Management Inc.
Ken Shibusawa, who has more than three decades of investment experience at firms including Goldman Sachs Group Inc. and JPMorgan Chase & Co., said the BOJ’s trillions of yen in ETF purchases since 2010 will make Japan’s stock market as dysfunctional as the bond market. He is a descendant of Eiichi Shibusawa, the 19th century industrialist who led Japan’s introduction to capitalism after the Meiji Restoration.
