In the afternoon of August 18, the thematic seminar titled "Current State of Japan's Economy and Capital Markets" was successfully held at the Shanghai Guoyan Wealth Management Research Institute. Co-hosted by the Japan Research Center of Shanghai Jiao Tong University (SJTU) and the Hong Kong Academy of Industry and Innovation (HKAII), the event was organized by the Shanghai Guoyan Wealth Management Research Institute.

The seminar was chaired by Mr. Ge Jun, President of HKAII. Tadaaki Kawamura, Minister of the Economic Department at the Embassy of Japan in China, delivered an opening speech. Ken Hatta, Chief Strategy Officer for China Business at Sumitomo Mitsui Trust Bank, and Susumu Sawada, Deputy General Manager of the Overseas Trust Promotion Department at Sumitomo Mitsui Trust Asset Management, gave keynote speeches. Lu Zhengwei, Chief Economist of Industrial Bank, and Jiang Haifeng, Managing Partner of EY Greater China’s China Financial Reform Task Force, delivered comments successively. Ji Weidong, Senior Professor of Humanities and Social Sciences at SJTU and Director of the SJTU Japan Research Center, made a concluding speech.

Over 40 participants attended the seminar, including senior scholars from SJTU, Fudan University, and Shanghai University of Finance and Economics, as well as practical experts from Chinese and Japanese enterprises such as Sumitomo Mitsui Trust Bank, Sumitomo Mitsui Trust Asset Management, Shanghai Head Office of the People’s Bank of China, Asset Management Center of Agricultural Bank of China, EY, HTI Capital, HT Securities, Tencent Investment, Tencent Finance, Ping An Bank, Volcanics Venture, Huihua Wealth Management Co., Ltd., CIFI Group, Milkland, Liuhe Zhiqian, and Oriental Jiaf.

Mr. Ge Jun introduced the development and construction progress of HKAII, as well as the keynote speakers and commentators for the seminar. He extended a warm welcome to the entrepreneurs and scholars in attendance.

In his opening speech, Tadaaki Kawamura shared the current state of Japan’s economy, including its exit from deflation and the positive cycle between prices and wages. Looking ahead to the achievements and future directions of China-Japan financial cooperation, he noted that there is broad room for collaboration in areas such as addressing aging populations, and called for joint efforts to tackle global economic challenges.

Ken Hatta delivered a keynote speech on "Introduction to Investment Management Business in Japan’s Low-Interest Rate Environment." He reviewed Japan’s entry into a long-term low-interest rate era following the collapse of the bubble economy, pointing out that against the backdrop of worsening aging, pensions and savings alone are insufficient to secure a stable retirement. He shared Japan’s experience in pension investment management reform and emphasized the investment philosophy of "long-term, diversified, and regular investment." Hatta also proposed addressing low-interest rate challenges by enriching investment products and popularizing financial education.

Lu Zhengwei stated that Japan’s explorations in areas such as enterprise globalization, aging populations, and social security offer valuable references for China. Combining China’s current context of separate industry operations and incomplete capital account liberalization, he discussed issues with Hatta, such as asset discovery and stock market performance during low-interest rate periods. He stressed the need to explore a financial development path suitable for China based on its actual conditions.

Susumu Sawada elaborated on "Japan’s Financial Market Environment and Investment Opportunities." He pointed out that the Tokyo Stock Price Index (TOPIX) has grown significantly from 2010 to 2025, with corporate profitability showing strong growth. Currently, Japan’s inflation is easing, wages are growing steadily, and consumer spending is recovering—all of which support the sustained growth of corporate profits. He also introduced the Bank of Japan’s interest rate hike plan and reforms in the Tokyo Stock Exchange market, emphasizing the potential of the Japanese market in diversified investments and identifying investment opportunities in export-oriented manufacturing and other sectors.

Jiang Haifeng noted three imbalances in China-Japan capital market interactions: in terms of investment stock, Japan invests more in China than vice versa; recently, China has shown greater interest in Japan while Japan’s interest in China has cooled; and there is more industrial and trade exchange than securities market exchange. He emphasized that there is broad room for cooperation between China and Japan in the financial sector.

During the seminar, guests engaged in in-depth discussions on topics such as China-Japan financial cooperation and market opportunities, creating a lively atmosphere.

Ji Weidong affirmed the seminar’s significance in promoting China-Japan economic and financial exchanges and shared three insights from participating: first, since 2018, both China and Japan have focused their economic policies on expanding domestic demand and preventing financial risks—a key change at the macroeconomic level; second, there is room for cooperation between China and Japan in economic and financial fields, and joint efforts can be explored to provide stability amid global uncertainties and address issues such as aging populations; third, the experience of Japanese trust banks is unique, and their practices in financial risk management, low-interest rate operations, and investment portfolios are worthy of reference for China.

This seminar brought together experts in China-Japan economic and financial fields to conduct in-depth discussions on the current state of Japan’s economy and capital markets, as well as potential cooperation. It provided insights for addressing aging populations and developing elderly care industry investments, and promoted exchange and mutual learning between China and Japan in the financial sector.