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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (5354)	8/1/1998 6:26:00 PM
From: Michael Sphar	Respond to of 9980

Thanks for pointing that out Ramsey. Just call me dense, before taking my money.<g>

To: Ramsey Su who wrote (5354)	8/3/1998 10:47:00 AM
From: MikeM54321	Read Replies (1) \| Respond to of 9980

Ramsey, After reviewing the link you gave us to the "Big Bang," I was surprised at the gist of the article. It appears (from this article) the big bang was not developed so much for Japanese investors to invest overseas, but as to attract US capital to Japanese markets. The article only briefly mentions the aspect most followers of this thread have been interested in. Namely Japanese inflows to the US. I'm getting this feeling either the article was off in it's premise, or US investors are trying hard to see something that is not in the big bang. There is nothing in the article about any October or December time frame where more Japanese money may flow into US markets. And it says just the opposite about the postal savings system. It says the Big Bang doesn't even address it, period. Hopefully it was just a poorly written article and the writer didn't understand, that the biggest effect of the big bang was to free up Japanese capital to go wherever it wants to. At least that's what the US press has reported. I cut out a few lines from it and I think these lines portray the whole article. MikeM(From Florida) _______________________________________ "Big Bang" Program Taking Clearer Shape Some analysts said many Japanese banks, securities houses and insurers will lose out in the heightened competition and that many new foreign companies will be able to expand their presence. Even big institutions should concentrate on the areas they are good at in order to survive, the analysts said. Some analysts said the package doesn't go far enough because the financial markets would still be heavily regulated by the Finance Ministry and other government organizations. They also said the package fails to address reform of public financial organizations. They cite, for example, the postal savings system, the nation's largest financial institution. Susumu Kato, chief economist at BZW Securities (Japan) Ltd., contends that the increase in competition will be limited. "There are no measures in the package to improve profitability of the Tokyo financial market," he said. Many economists doubt the package's ability to dramatically improve Tokyo's attractiveness as an investment destination. Yamamura said that Japan's financial markets are far from profitable and not friendly to overseas investors. "Overseas investors cannot purchase notes issued by the Finance Ministry with dollars," he said. "There are no guaranteed opportunities for them to manage their funds in short-term increments of one day or one hour. They also have to use the Japanese language when making their transactions. And there are many other restrictions that keep foreign investors away from Tokyo." The package altogether avoided the postal savings system, which absorbs about one-third of individual savings. Banks complained that competition is distorted by the existence of such huge public financial institutions. The Committee on Financial System Research refrained from taking any stance, saying in its statement, "It is difficult to review the existence of the public financial institutions, including postal savings, because it is not just a financial matter. We would rather focus on solving urgent problems in the private sector."