Japan to Tighten Pre-screening for Overseas Stock Investors

Japan plans to strengthen pre-screening measures for overseas investors that could potentially cooperate with foreign intelligence gathering efforts, addressing rising national security concerns.

The Finance Ministry will introduce new regulations requiring relevant overseas investors to notify the Japanese government for pre-approval, before they can invest in 1% or more of Japanese firms’ listed shares. Currently, investors meeting specific criteria and considered low-risk are exempt from these requirements.