Foreign Investors Fear Retreat in Japan’s Governance Reforms

Investor concern is mounting over a possible rollback of Japan’s corporate governance reforms, a key driver of foreign investment, threatening a rally that pushed equities to record levels.

The Financial Services Agency is preparing its first revision in five years to the Corporate Governance Code, which has guided efforts to enhance corporate value at listed firms. It has reached out for public comment on the changes with the window closing Friday. Separately, the Ministry of Justice is seeking feedback through next week on proposed amendments to the Companies Act, which governs how firms are created, run and overseen.