Visit to the Tokyo Stock Exchange & Bank of Japan

Two weeks ago, we visited the Tokyo Stock Exchange and Bank of Japan. It was indeed an insightful trip where we learnt more about the actual working of Japan's financial market.
Located in the Nihombashi area, the Tokyo Stock Exchange (TSE) is one of the world's three largest stock markets, the other two being New York's Wall Street and the London Stock Exchange. In 2007, a total of 752 trillion yen of stock were traded on all Japanese stock exchanges. The shares of 2,414 domestic companies listed on the the TSE are traded everyday. This is a but a small proportion of the 1,000,000 incorporated enterprises in Japan. Indeed, only the forerunners of each market are listed.

This is the new trading floor of the TSE that has been computerized in an effort to increase efficiency and reduce the cost of transactions by member securities companies. The stock trading floor was closed in 1999.

This was the stock trading floor in the 1960s.

What I found to be most interesting would be the MOTHERS (Markets of The High Growth and Emerging Stocks) market that was established in 1999. This market offers firms with high-potential an avenue for procuring funds through the stock exchange despite their current lack of business achievements. This is done in a bid to facilitate the revitalization of the Japanese economy by nurturing new firms and developing the composition of various industries.

In my opinion, this is a good idea that can also drive entrepreneurial spirit within the country. It can provide a solution to the problem of some SMEs being unable to expand further due to a lack of funds for expansion.

@ The beautiful Nihombashi Bridge

It was the majestic Neo-Baroque architecture of the Bank of Japan that first caught our attention. This main building was designed by Kingo Tatsuno, a pioneer of Western-style architecture in Japan. It was completed in 1896, just at the cusp of the new Meiji government.

Inside, we had an opportunity to visit the old 'vaults' with doors one metre thick and a grand gallery lined with portraits of past governors of the Bank of Japan.

Additionally, a representative from the Center for Monetary Cooperation in Asia presented the BOJ's stand on the recent financial crisis in Japan and the justification for its economic and financial policy responses. I had benefitted alot from the discussion of some of my classmates from the financial sector, as they were able to share the experience of work in their own countries, raising thought-provoking questions in the process.

The last stop of the day was the Japanese Currency Museum. It was yet another interesting session to learn about the evolution of notes and coins in Japan.

***

Besides learning during classes and through discussions with schoolmates, I am thankful for the opportunity to be able to visit such important places in Japan. It seems to make the learning come alive! :)