Article Abstract:
The Japanese government's Dec 1992 order that the Nikkei-225 Index would operate simultaneously with a newly formulated index for 15 months is aimed at edging out Nikkei-225 contracts. Nikkei-225 contracts are based on prices quoted on the Tokyo Stock Exchange (TSE,) while the new Nikkei contract would be based on a capitalization-weighted index. The government has taken this step to protect the TSE which has lost money for three consecutive years. It also wants to help small stockbrokerages with little knowledge of index arbitage and safeguard its own interests.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Japan's economic bureaucrats probably will not initiate any serious changes with the government in disarray. Once-routine deals are now complicated and confused, and the government is too feeble to revive the economy through any means. The bureaucrats, through virtue of their stability, remain powerful, and the 1992 spending authorizations give them considerable power. The Finance Ministry is resisting tax cuts to promote spending, though other ministries support them.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Japan's government plans to privatize the East Japan Railway by selling its stock on the Tokyo Stock Exchange. Accordingly, a listing application with an Oct 1993 flotation date will be filed in Apr 1993. Four million shares valued at between $3 and $4 million will be offered. The government hopes that this privatization will be smoother than the previous listing of Nippon Telegraph & Telephone, the share price of which dropped 80% in value at one point.
User Contributions:
Comment about this article or add new information about this topic: