According to data compiled by Nikkei, foreigners own 30% or more of 104 listed Japanese firms.
Nikkei compiled data regarding foreigners ownership ratio in Japanese companies. The data excluded emerging companies, foreign-affiliated firms and companies backed by business alliance with foreigners.
According to the data, as of the end of 2004, foreigners own 104 of listed Japanese companies by 30% or more, an increase of 29 firms. Among them, foreign investors held more than a 50% stake in six corporations, as opposed to 3 firms in 2003. Many of these firms owned by foreigners at a high ratio enjoy dominant market shares in their industries and maintaining strong profit margins. Even companies boasting high profits will be further forced to take corporate management strategies given foreign investors attitudes.
Orix Corporation, a major leasing company, had the biggest foreign ownership at 57.2%. It consecutively posted the highest net profit in 2004 following 2003 is acquiring overseas investors through various activities including managements visits to the US and Europe.
In 2004, foreign investors purchased 6.35 trillion yen at stock exchanges, which was the third-highest record. “US investors see Japanese stocks as undervalued and are seeking the opportunity to increase their shares,” according to a strategist.