Japan Country Report 2014

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Discovery Reports

Tokai Tokyo strengthens platform through innovative alliances

PUBLISHED : Wednesday, 09 July, 2014, 12:49pm
UPDATED : Friday, 15 June, 2018, 10:52am

The overall sentiment for Japan's stock market remains positive especially after a strong rebound last year. Receiving a much-needed push from the government's aggressive monetary, fiscal and growth policy, Japanese stocks have regained the interest of domestic and international investors. Having more than 80 years' experience and an intimate knowledge of the securities industry, Tokai Tokyo Financial Group is the partner of choice for those seeking to diversify their financial assets and invest in the re-energised stock market of the world's third-largest economy.

"The securities market is favourable now, offering more upside potential and near-term opportunities to investors," says Tateaki Ishida, Tokai Tokyo president and CEO. "Japanese stocks are relatively low-priced with the Nikkei trading at approximately 1.3 times its book value - about 50 per cent lower than United States stocks. With our extensive market and investment insights, we can lead and effectively guide prospective investors in making the right purchases."

Founded in 1929, Tokai Tokyo has evolved to become a financial service group with securities brokerage firm Tokai Tokyo Securities as its operating nucleus. The company has vigorously pursued joint venture securities operations with regional banks in order to build a strong customer network.

This has become Tokai Tokyo's distinct business model on top of its commanding presence in the Chubu region. These alliances have also proven vital in difficult economic and competitive environments, making the company resilient to circumvent the effects of the global economic slowdown between fiscal years 2009 and 2011.

In 2009, Tokai Tokyo adopted a holding company structure to free itself from the constraints of a conventional securities company framework. "With a holding company structure, we can easily pursue growth via domestic and international partnerships and strategic alliances," Ishida says.

Through its subsidiaries and affiliates, Tokai Tokyo offers a comprehensive range of products and solutions to meet the financing and asset management needs of two high-priority customer segments: medium-sized businesses and high-net-worth individuals. The company has subsidiaries involved in trading and brokerage, underwriting and sale of securities, and other activities associated with financial instruments.

Tokai Tokyo directly engages in the securities business abroad through two subsidiaries: London-based Tokai Tokyo Securities Europe and Hong Kong-based Tokai Tokyo Securities (Asia). It has also established an information gathering subsidiary in the US and a fund management subsidiary in Singapore.

"As we seek to further advance our international expansion strategy, we intend to form more strategic partnerships with leading overseas financial institutions, particularly in Asia, not only to assist our domestic customers with their foreign investments, but also to entice international investors to come to Japan," Ishida says.

Embracing its innovative alliance strategy further, Tokai Tokyo has expanded its partner network to Asia, Europe and the US, thereby globalising the company's portfolio. Tokai Tokyo's key business partners in Asia have come to include Guotai Junan Securities in China, Daewoo Securities in South Korea, Saigon Securities in Vietnam, Religare Enterprises in India, Phillip Securities in Singapore and First Metro Investment in the Philippines. These business tie-ups have been arranged to mutually enhance the capabilities of the parties to deliver financial instruments and services to the benefit of their respective clients. In December last year, Tokai Tokyo announced that it had formed a strategic partnership with the Bank of East Asia, Hong Kong's largest independent local bank, and closed a business alliance deal with American comprehensive financial service group Stifel Financial.

"Going forward, we will continue to diversify and build up our operations through business co-operation for us to fulfil the growing needs of our valued clients," Ishida says. "These key alliances are essential for our rise to become one of Asia's 10 leading securities firms."

Tokai Tokyo Financial Group