Leading Candidates to Be Japan’s Prime Minister Avoid Stocks
(Bloomberg) -- The leading candidates to be Japan’s next prime minister have avoided investing in the country’s stock market.
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Two of the top candidates, Shinjiro Koizumi and Sanae Takaichi, report owning no shares. The third main candidate, Shigeru Ishiba, owns stocks which his office says he inherited.
The Japanese government has been encouraging people to shift some of the roughly 1 quadrillion yen ($7 trillion) held in bank accounts to the stock market through tax-free investment accounts. The inherent volatility of investing was highlighted on August 5, when the Nikkei 225 suffered its biggest rout since 1987, only to bounce back the next day.
“It is a betrayal to the public that they aren’t interested in investment and aren’t doing anything when the government is calling on people to shift to investment from savings,” said Mitsushige Akino, president of Ichiyoshi Asset Management.
Japanese lawmakers are required to report their personal wealth excluding bank deposits, although their families are exempt from such reporting. The filings of the three candidates are based on their assets at the time of the last general election held in October 2021. Increases in securities holdings need to be reported on an annual basis.
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In aggregate, Japanese households have 51% of their assets in cash and deposits, 13.6% in stocks and 5.8% in investment trusts, according to the Bank of Japan.
Outgoing prime minister Fumio Kishida also did not own stocks when he took office in 2021, according to a public document.
The Liberal Democratic Party will hold an election to replace Kishida as head of the party on Sept. 27. The winner will become the next prime minister.
Koizumi, seen as a front-runner in some polls, reported he owns no financial assets or real estate, according to public filings viewed by Bloomberg.
“The scope of disclosure is limited to assets held by lawmakers themselves and does not cover assets held by their family members. So there are questions about whether the true picture is reflected,” said Hiroshi Kamiwaki, a law professor at Kobe University.
Takaichi, who is a proponent of aggressive monetary easing, also reported she does not hold stocks or investment trusts. She owns real estate worth ¥10 million yen. The offices of both Koizumi and Takaichi told Bloomberg that there’s been no change in their assets this year.
Ishiba, who is a former defense minister, owns stocks in seven companies; two steelmakers, two heavy machinery makers, two electric power companies and one railway firm. The holdings have a combined value of ¥27.2 million. Ishiba’s office said he acquired all of his stock holdings through inheritance.
There are a record nine candidates competing to head the LDP after a slush fund scandal weakened the grip of party elders.
Below is a table of the stock holdings of each candidate, including those who are not the front runners.
Yoko Kamikawa, Shinjiro Koizumi, Takayuki Kobayashi and Sanae Takaichi reported no stocks holdings.
(Updates with table on each candidate’s holdings)
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