PROMPTED by the country's big four broking houses, Japan is studying plans to allow Asian companies, especially those from Hong Kong and Singapore, to list on the Tokyo Stock Exchange (TSE).
The study comes as Japanese investors are showing unprecedented interest in Asian equities and as Western companies are pulling out of the Tokyo exchange.
''Yes, we're discussing the possibility of allowing Asian companies to list here but we haven't reached a conclusion yet,'' said Jun Shimizu, TSE's assistant manager in the office of listing supervision.
Mr Shimizu said TSE officials visited China, Hong Kong, Singapore, the Philippines, Malaysia, Thailand and Indonesia in March to explore plans to get some reputable companies to have a primary or secondary listing in Tokyo.
If the study shows that there is demand to list on the Tokyo market, the TSE will have to relax the existing stringent rules, which have discouraged many from seeking a flotation there.
One problem facing foreign companies keen to tap the enormous Japanese capital market is the high cost of translating all listing or disclosure documents into Japanese, which is the largest cost component of such a flotation.
''That can be a big problem for Asian companies, which tend to come up with more rights issues, as this means more translation and higher cost, making it less attractive for Asian companies to list in Japan,'' said Mr Shimizu.
