This audio is generated by AI, so pronunciation and expressions may not be fully accurate. The narration is only in English.
Nihonbashi Kabutocho/Kayabacho, home to the Tokyo Stock Exchange, lost much of its vitality after the closure of the exchange's trading floor in 1999. The ongoing redevelopment project, however, has restored the area's former shine, transforming the area into a hub of organizations and institutions driving Tokyo's promotion as a top-class global financial city, through emerging asset management firms and startups in next-generation financial services such as fintech.
On February 20, 2025, a FinGATE Thank You Party was held, drawing a large gathering of stakeholders and industry figures. Heiwa Real Estate President Tsuchimoto Kiyoyuki and FinCity.Tokyo Chairman Nakaso Hiroshi delivered remarks, sharing their thoughts on the project and discussing their vision of Tokyo as a top-class global financial city. The key points from their remarks are summarized below.
One of the main pillars of our redevelopment project is using FinGATE to play a role in transforming Japan. Another is to "make Kabutocho a colorful neighborhood."
In the past, the vibrancy of this neighborhood came from the bustling trading floor of the Tokyo Stock Exchange. Back then, however, it was mostly all Japanese male stockbrokers, so in the summer it was all white shirts, and in the winter, all dark blue jackets—a "monochrome vibrancy."
What we are aiming for with this project is a "colorful neighborhood." One that is not just for men, but a place women can enjoy as well. Not only a place to work, but also a place where you can enjoy food, shopping, and art. That is the kind of neighborhood we want it to be, and what we have been working to create. I know many of you work very hard, but the neighborhood is transforming into a place you can come to and enjoy on your time off as well.
We are honored to have so many of our tenants and other stakeholders gathered here today. I hope this occasion provides an opportunity for you to communicate more deeply with one another, so we can work together from this neighborhood to drive innovation in finance, help transform Japan into a leading asset management center, and transform the country itself.
Since its establishment in 2019, FinCity.Tokyo has been based in FinGATE, and we' are very pleased to hear that there are now over 100 fellow companies operating from these offices.
As for the financial and economic environment surrounding us, the Bank of Japan has begun shifting toward the normalization of monetary policy, away from unconventional measures such as yield curve control (YCC) and negative interest rates. This new direction is centered on two main pillars: raising the policy interest rate and shrinking the balance sheet.
The current policy interest rate stands at 0.5%. How far it will rise depends on the so-called neutral interest rate, which is estimated to be somewhere between 1% and 2.5%. I believe interest rates will continue to rise steadily toward that level. As for the other pillar—shrinking the balance sheet—the Bank of Japan currently holds approximately 580 trillion yen in government bonds, and a gradual path toward reducing that amount has already been outlined.
Going forward, I believe we are entering a phase in which interest rates will move more dynamically in response to economic and financial conditions.
In recent years, companies have increasingly begun to take capital costs and share prices into account for their management. On the household side, the expansion of the Nippon Individual Savings Account (NISA) program has served as a tailwind for shifting the public mindset from saving to investing. Meanwhile, the government is also steadily implementing the various policies outlined in the "Policy Plan for Promoting Japan as a Leading Asset Management Center."
The financial and capital markets before us are filled with uncertainty, shaped by complex economic and financial trends and shifts in global affairs. However, depending on how one looks at it, that very uncertainty also signals a wealth of business and investment opportunities, and I dare say we are approaching a truly exciting phase—one that will be a true test of our abilities.
Not so long ago, Kabutocho was a monochrome kind of place. Filled by day with the intensity of stockbrokers crammed into the trading floor, so pressed for time they begrudged even the time it took to slurp down a bowl of plain soba, and by night, these same stockbrokers gathering at yakitori shops, deep in conversation about the markets. Now, I believe Kabutocho has been transformed into a colorful neighborhood, one lined with stylish cafes and restaurants, and alive with jazz and art events.
It has now been six years since the establishment of FinCity.Tokyo, Japan's first public-private financial promotion organization. When it was first established, it had around 30 member companies; today, the number has grown to approximately 60.
Heiwa Real Estate has been involved with us since our establishment, and it is the participation of such a diverse range of players that has driven our mission to position Tokyo as a top-class global financial center. Just recently, we also held our flagship events—the FinCity Global Forum and Tokyo Asset Management Forum—right here at KABUTO ONE, this new landmark in Kabutocho. I believe it is particularly meaningful that we are hosting these forums in Kabutocho, because our organization's mission resonates strongly with the FinGATE series' vision for neighborhood development.
The model we envision for Tokyo as a global financial center is a city where finance exists side by side with the arts, as in New York City or London. In both Broadway and the West End, for instance, people can enjoy theater or a good meal after work. During the day, the work of finance is fast-paced, numbers-driven, and very very stressful. But when the workday ends, we want this to be a city where people can unwind and immerse themselves in art.
The financial center we envision for Tokyo is not one that pursues the interests of the financial sector alone. Rather, we aim to foster sustainable economic growth through the promotion of sustainable finance, and to advance Japan's financial ecosystem by encouraging the entry of emerging asset management firms. Our goal is to build a financial center that can contribute through finance not only to Japan, but also to Asia, which encompasses so much of Japan's supply chains.
We strongly hope that the FinGATE series will continue to grow beyond the boundaries of Tokyo. Last year, four regions—Tokyo, Osaka, Fukuoka in southern Japan, and Hokkaido in northern Japan—were designated as Asset Management Special Zones. By allowing each of these zones to connect organically with their respective regional economies, we aim to build and advance Japan's overall financial ecosystem.
While impressive infrastructure is being put into place, it is all of you working on the front lines who will bring it to life. Those of you who have come together at FinGATE, whether by chance or shared purpose, are shaping the character of this new Nihonbashi Kabutocho through continuous mutual inspiration and growth, and I believe that this emerging culture will become a part of Tokyo's new identity.
