Tokyo Starts Fresh Talks on Becoming Major Financial Hub

Tokyo, Oct. 7 (Jiji Press)--The Tokyo metropolitan government launched on Wednesday fresh discussions on realizing its vision to turn the Japanese capital into a major global financial center. The talks come at a time when Hong Kong's status as an international financial center is believed to be falling due to the Chinese government's moves to strengthen its control over the region. In addition, the Tokyo government is apparently aiming to counter the idea being floated by some in the central government and the private sector to make an area including the major western Japan cities of Osaka and Kobe a global financial hub. "The environment surrounding global finance continues to change dramatically. We'll step up our efforts to win the tough competition with other cities," Tokyo Governor Yuriko Koike said in preparatory talks on Wednesday for a meeting of experts on its financial hub vision. "Now is the last chance" to realize the vision, she said, citing the Hong Kong situation and Britain's exit from the European Union. At the preparatory session, Tokyo metropolitan government officials said that Tokyo is in a tough race with such Asian rivals as Shanghai, Hong Kong and Singapore. Noting that Seoul and Busan have seen their presence falter as a result of the South Korean government's strategy of scattering financial center functions to the two cities, the officials stressed the importance of investing related resources intensively in Tokyo, home to a number of financial institutions, auditing companies and others. Behind the launch of the fresh talks is concern that Tokyo has been struggling to boost its presence as an international financial center. Under the current vision, compiled in 2017, the metropolitan government has been working with the private sector to attract foreign companies. But Tokyo placed fourth in the latest rankings of global financial centers. The Tokyo government plans to update its financial hub vision in autumn next year based on proposals from experts. Japanese Prime Minister Yoshihide Suga, who took office last month, has indicated a plan to set up a financial center in a city other than Tokyo. Yoshitaka Kitao, president of major Japanese online financial service firm SBI Holdings Inc. <8473>, who has close ties with Suga, has proposed that the Kansai western Japan region, which includes Osaka and Kobe, host a global financial center. But many challenges await, such as tax incentives and greater use of English. On Thursday last week, a system glitch hit the Tokyo Stock Exchange, leading to a full-day trading suspension for all stocks listed on the exchange. END