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Japan’s Cabinet Approves Tougher Rules on Foreigners Owning Stocks

  • Foreign state-owned enterprises will have to comply with rules
  • New rules may be for targetting Chinese investment: Invesco
Final Trading Day Of The Year At The Tokyo Stock Exchange
Photographer: Kiyoshi Ota/Bloomberg
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Prime Minister Shinzo Abe’s cabinet on Friday approved draft legislation to impose tougher rules on overseas investments in the nation’s stock market, targeting foreign state-owned firms.

The planned rules will require overseas investors to report in advance when they plan to buy more than 1% of shares in companies related to Japan’s national security, compared with the current 10% threshold, according to the finance ministry. The government aims to gain passage of the revised bill outlining the rules during the current parliamentary session.