Japan looks to Hong Kong Tracker Fund for cross-shareholding solution

Yanagisawa Hakuo, the reformer heading JapanÆs Financial Supervisory Agency (FSA), is reportedly proposing to develop an exchange-traded fund (ETF) that would absorb the massive cross-shareholdings of Japan Inc.

Jame DiBiasio

May 14, 2001

The concept resembles the Hong Kong’s government utilization of the Tracker Fund to dispose of its stakes in Hang Seng Index stocks following its 1998 stock market intervention.

Yanagisawa is said by market players to be discussing the idea with Nomura Securities, which would sponsor the product. The ETF would track the Tokyo Stock Exchange’s TOPIX index, which is the major benchmark for Japanese institutional investors.

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