Foreign investors are reportedly increasing their ownership stakes in major Japanese companies, including Hitachi, Ltd., and some argue that even if the Nikkei Average reaches around ¥100,000, Japan's wealth distribution structure is unlikely to change. Hitachi's equity market capitalization exceeded ¥20 trillion as of the end of April 2026.
While buying of Japanese stocks by overseas investors is driving share price gains, concerns have been raised that the benefits of this wealth are not reaching Japanese people sufficiently. The author notes that strong buying by foreign investors is contributing to share price gains, while also warning that over the long term it could affect profit distributions to domestic investors and corporate decision-making.
Foreign investors' ownership ratio in Hitachi, Ltd. rose from 36.4% at the end of the fiscal year ended March 2005 to 51.4% at the end of the fiscal year ended March 2025, exceeding half. This means that foreign investors own half of the value generated by the business.
The transfer of value through share ownership is said to have the potential to affect management decisions, including shareholder return policies, personnel matters and corporate acquisitions, while the risk of non-financial assets being transferred overseas has also been highlighted.
The article is a re-edited excerpt from an external book and examines the current state of Japan's stock market and the challenges ahead, focusing on the case of Hitachi.