Consumer Discretionary
Mio Kato provides his take on the crossholdings sell-down - the trend of governance reform in Japan continues with Toyota, Toyota Industries and Aisin selling shares of Denso. Denso is buffering some of the flow impact by repurchasing roughly half of the shares to be sold. While the size of these moves is relatively large, Mio believes their impact could be disproportionately large for the market as a whole. He considers this to be further confirmation of the relatively positive backdrop for asset allocation away from China and into Japan, especially in the long-term.
Edition: 175
- 08 December, 2023