5-8, Nihonbashi Kayabacho 1-chome, Chuo-ku,
Tokyo 103-0025 Japan
Contents
Securities Market in 2006 ……… 1
Member Firms ……… 11
Performance of Securities Industry … 14
Securities Market in 2006
1) Economic Trend
In 2006, Japan’s economy showed improve-ment backed by gains in corporate earnings. Capital investment increased by 11.0% due to the sustained strong global economy, responses to environmental issues and enhancement of competitiveness. Against this backdrop, employment and income conditions also made progress.
Personal consumption showed underlying strength owing to the good performance of the corporate sector, and the real GDP growth rate increased to 2.2% from that of 1.9% in 2005.
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（％）
Real GDP Growth Rate
Real GDP Growth Rate
（Quarterly） Note: Data is year-on-year comparison.
Source: Cabinet Office
Net Exports Public Demand Private Demand Real GDP
Corporate proits exhibited notable improve-ment in proitability structure as a result of purg-ing a large fraction of excessive employment, facilities and debts. Current proit marked ¥54,379 billion, exceeding ¥2,686 billion from the previous year, and the current proit to sales ratio was 3.5%. Corporate proits and current proit to sales ratio increased for 5 years in a row from iscal 2002 to iscal 2006.
("Fiscal Year (FY)" begins on April 1 and runs through March 31.)
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IJı ijı Ĵı ĵı Ķı ķı
IJįı IJįĶ ijįı ijįĶ Ĵįı ĴįĶ ĵįı
（％） （
（FY） Source: Ministry of Finance
Current Profits (left scale) Current Profit to Sales Ratio (right scale)
Corporate Profits
(all industries, all scales of businesses)
Corporate Profits
(all industries, all scales of businesses)
Securities Market in 2006
Albeit at a relatively a slow pace, there was a pickup in commodity prices, and both Consumer Price Index and Corporate Goods Price Index turned positive and posted 0.1% and 0.7% increases respectively. However, there was little upward pressure on prices driven by cost factors during the year as the unit labor cost declined from the previous year.
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ĮIJįı ĮıįĶ ıįı ıįĶ IJįı IJįĶ ijįı （％）
Note: Data is annual average except for 2007, which includes only up until June and is seasonally adjusted.
Source: Ministry of Internal Affairs and Communications, Bank of Japan
Consumer Price Index (excluding fresh food) Corporate Goods Price Index (final consumer goods)
Consumer Price and Corporate Goods Price Indices
Consumer Price and Corporate Goods Price Indices
（CY）
While diicult employment circumstances remained especially in local regions, employ-ment conditions improved widely, and the unemployment rate has continued to decline since 2002. Looking at the job-ofers to seekers ratio (excluding new school graduates but including part-time workers), the ratio recovered to 1.06 on average in 2006, exceeding 1.00 for the irst time in 14 years. Recruitment for new school graduates increased both in job-ofers and job inders due to economic recovery.
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ijįı
IJįı Ĵįı ĵįı Ķįı ķįı ĸįı
ıįı ıįij ıįĵ ıįķ ıįĹ IJįı IJįij （％）
Note: Data is annual average except for 2007, which includes only up until June and is seasonally adjusted.
Source: Ministry of Internal Affairs and Communications, Ministry of Health, Labour and Welfare
（CY） (Ratio (Times))
Employment Conditions
Employment Conditions
Securities Market in 2005
2) Stock Market
The Nikkei 225 Stock Average sufered a sell-of by foreign investors since May 2006 due to uncertainty over the external environment, and fell below 14,000 in mid June. The index then turned upward amid expectations of economic recovery.
Stock prices in the emerging equity market softened right from the beginning of 2006. Although the Nikkei Jasdaq Average Price climbed above 2,900 in mid January, it demonstrated a continued weak tone for the rest of the year.
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(daily average, left scale) Nikkei Jasdaq Stock Average (daily average, right scale)
（yen） （yen）
Stock Price
Stock Price
Source: Nihon Keizai Shimbun
In 2006, the daily average stock trading value of the 1st Section of the Tokyo Stock Exchange hit a record high of ¥2,598 billion, increasing ¥724 billion from the previous year. This growth relected active investment mainly by foreign investors.
The daily average stock trading value of the Jasdaq Securities Exchange reached ¥94 billion, increasing ¥14 billion from the previous year. ıįı ıįĶ IJįı IJįĶ ijįı ijįĶ Ĵįı ĴįĶ ĵįı ĵįĶ Ķįı ı IJı ijı Ĵı ĵı Ķı ķı ĸı Ĺı ĺı IJıı
ĺĸ ĺĹ ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ
Note: Data for Jasdaq Securities Exchange before 2004 comes from the previous Jasdaq Market. Data for Jasdaq Market in 2004 was only for the period from January 1 to December 12. Source: Tokyo Stock Exchange, Jasdaq Securities Exchange
（CY）
（trillion yen） （billion yen）
TSE 1st Section (left scale) Jasdaq Securities Exchange (right scale)
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Securities Market in 2006
In 2006, equity inancing (paid-in capital increase) by publicly listed companies totaled ¥2.7 trillion, decreasing 12.9% from ¥3.1 trillion in the previous year. Looking at issuing categories, while the amount of public oferings increased to ¥1.6 trillion, more than double from the previous year, private placement decreased 52.1% year on year to ¥1.1 trillion.
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Notes: 1. Private placements and others include preferred stocks and private placements.
2. Data for Jasdaq Market in 2004 was only for the period from January 1 to December 12.
Source: Tokyo Stock Exchange, Japan Securities Dealers Association （CY） （trillion yen）
Equ
Public Offerings Rights Offerings Private Placements and Others
-./ 01 23 0 45 460 478 29:; <: ; 510: 4=
In 2006, a total of 181 companies went public. The number of newly listed companies increased by 24 compared with the previous year. Total capital raised through IPOs increased 47.8% to ¥595 billion.
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Notes: 1. IPOs do not include offerings by foreign companies that are listed in Japan. 2. Data for Jasdaq Market in 2004 was only for the period from January 1 to December 12.
Source: Japan Securities Dealers Association
（CY） （trillion yen）
IPO Amounts (right scale) Number of Newly Listed Companies (left scale)
N
Securities Market in 2005
3) Bond Market
Looking at the interest rate trend during 2006, the short-term rate stayed in the range of 0.2 to 0.3% in the second half of the year, after the end of the Bank of Japan (BOJ)'s quantita-tive relaxation policy in March 2006 and the end of the zero interest rate policy in July 2006.
Although the long-term JGB yield exceeded 2% temporarily in March 2006, it retreated to below 1.9% in late August due to a sharp de-cline in the revised consumer price index. After that, it luctuated in the face of mixed concerns about the direction of the economy.
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（％） （％）
（CY）
Call
(
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Yield
( )
Long-term and Short-term Interest Rates
Long-term and Short-term Interest Rates
E FG H IJ KLMN OFPQ MRMN ST FO UFE VF IOWX IY MN Z J
In 2006, the total OTC bond trading volume (including Repos) increased by 35.4%, to ¥9,153 trillion. Of them, the trading volume of JGBs rose 38.1%, to ¥8,881 trillion. In particular, super-long-term and long-term JGBs with terms of 10 years or more increased by 45.7%, to ¥4,377 trillion thanks to strong buy orders from foreign investors.
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ĺĸ ĺĹ ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ
（CY） Notes: “Short-term JGBs” are the total of financial bills and treasury bills. Source: Japan Securities Dealers Association
Short-term JGBs Super-long-term, Long-term, Mid-term JGBs Others
（hundred trillion yen）
OTC Bond Trading
(Including Repos)
Securities Market in 2006
In 2006, corporate debt inancing in the Japanese market increased by 3.8% year on year, to ¥8.3 trillion. Corporate straight bond issuance decreased by 3.2%, to ¥6.8 trillion. Issuance of convertible-type bonds with subscription rights increased by 60.1%, to ¥1.4 trillion. Amid an active trend of equity inancing due to the rise in stock prices, issuance of convertible-type bonds with subscription rights continued to increase.
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Notes: 1. “Straight Corporate Bonds” include “Asset Backed Bonds”.
2. Following the revision of the Commercial Code in 2002, “Convertible Bonds” were renamed “Convertible-type Bonds with Subscription Rights”. Source: Japan Securities Dealers Association
（CY） （trillion yen）
Straight Corporate Bonds Convertible-type Bonds with Subscription Rights
De
b t Financing
by Corporations
Debt Financing by Corporations
In 2006, public and corporate bond issuance decreased by 7.1%, to ¥210.9 trillion. By bond category, JGB issuance decreased by 5.6%, to ¥175.6 trillion. Issuance of municipal bonds decreased by 1.9%, to 6.0 trillion. Government-guaranteed bond issuance decreased by 43.3%, to ¥4.4 trillion. Straight corporate bonds decreased by 3.2%, to ¥6.8 trillion. On the other hand, FLIP (Fiscal Investment and Loan Program) agency bonds issuance increased by 7.3%, to ¥4.4 trillion.
Looking at the composition of bond issuance volume, the breakdown was as follows: JGBs, 83.3%; municipal bonds, 2.9%; government-guaranteed bonds, 2.1%; FILP agency bonds,
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Gov.-guaranteed Bonds
FILP Agency Bonds Straight Corporate Bonds Others
Compos
ition of Bond Issuance
Securities Market in 2005
4) Investment Trusts
Net assets of investment trusts as of the end of 2006 were ¥105,068 billion, crossing the ¥100 trillion mark for the irst time. Looking at the breakdown, publicly ofered trusts accounted for ¥68,928 billion, real-estate trusts accounted for 3,153 billion and private placement trusts accounted for ¥32,987 billion. Such growth in net assets can be attributed to sales increases at post oices and banks and the appearance of trillion-yen scale mega-funds.
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ĺĸ ĺĹ ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ
（trillion yen）
（End of CY） Source: The Investment Trusts Association
Publicly Offered Investment Trusts Real-estate Investment Trusts Private Placement Investment Trusts
N
et Assets Held in Investment Trusts
Net Assets Held in Investment Trusts
Among publicly ofered contractual-type securities investment trusts, stock investment trusts posted net assets of ¥55,658 billion, increasing ¥14,829 billion from the end of the previous year.
On the other hand, net assets of bond investment trusts decreased by ¥922 billion, to ¥10,577 billion, turning downward.
Net assets of MMFs decreased ¥327 billion to ¥2,693 billion from the end of the previous year, and have been decreasing annually since 2000. This trend implies that investors have preferred stock investment trusts with relatively high risk during the stock market recovery period.
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ĺĸ ĺĹ ĺĺ ıı ıIJ ıij ıĴ ıĵ ıĶ ıķ
（trillion yen）
（End of CY） Source: The Investment Trusts Association
Stock Investment Trusts Bond Investment Trusts Money Management Funds
¡¢ £¤ ¥ ¦
Securities Market in 2006
Among publicly ofered contractual-type stock investment trusts, unit-type trusts had net assets of ¥1,875 billion, decreasing ¥70 billion from the previous year.
On the other hand, net assets held in open type trusts and ETFs grew steadily. Net assets held in open type trusts excluding ETFs hit a record high of ¥49,666 billion. And since their introduction in 2001, ETFs have steadily expanded net assets, which rose to ¥4,117 billion in the year under review.
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Demand for private placement investment trusts is rising mainly among those small and medium-sized inancial institutions that have faced fund management diiculties. This demand has arisen because the lexible product design can meet the requirements of these inancial institutions. Furthermore, private placement investment trusts are invested in by variable annuities and funds of funds.
Among private placement contractual-type investment trusts, net assets of stock investment trusts amounted to ¥32,187 billion, increasing by ¥7,463 billion yen from the end of the previous year. On the other hand, net assets of bond investment trusts decreased by ¥119 billion,
to ¥800 billion. ı
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（trillion yen）
（End of CY） Source: The Investment Trusts Association
Stock Investment Trusts Bond Investment Trusts
Net Assets Held in Private Placement
Contractual-type Investment Trusts
Securities Market in 2005
5) Investor Trends
Among institutional investors, life and non-life insurance companies and pension funds increased their investments in all types of securities including stocks and other equities, foreign securities, and those other than stocks.
It was especially remarkable that stocks and other equities turned upward to ¥0.7 trillion in iscal 2006 reversing their downward trend for 3 consecutive iscal years since iscal 2003.
ĮIJı ĮĶ ı Ķ IJı IJĶ ijı
ıIJ ıij ıĴ ıĵ ıĶ ıķ
（trillion yen）
（FY） Source: Bank of Japan
Securities Other than Stocks Stocks and Other Equities Foreign Securities
Investments by Inst
itutional Investors
(Insurance Companies and Pension Funds)
Investments by Institutional Investors
(Insurance Companies and Pension Funds)
Looking at individual investor trends, funds invested in stocks and other equities have continued to decline since iscal 2005. And funds invested in foreign securities have continued to decline since iscal 2004.
On the other hand, funds invested in securities other than stocks such as JGBs and investment trusts, have been increasing signiicantly since iscal 2004.
ĮIJı ĮĶ ı Ķ IJı IJĶ ijı
ıIJ ıij ıĴ ıĵ ıĶ ıķ
（trillion yen）
（FY） Source: Bank of Japan
Securities Other than Stocks Stocks and Other Equities Foreign Securities
Investments by Individual Investors (Household)
Securities Market in 2006
Household inancial assets at the end of March 2007 increased by ¥15.7 trillion, to ¥1,536 trillion, reaching the highest level ever.
Although cash and deposits decreased by ¥450 billion under pressure from ultra-low interest rates, the category still accounted for the majority of total assets.
On the other hand, despite the decrease in stocks and other equities, it could be said that the shift from savings to investment continued steadily due to the fact that other risk products such as bonds and investment trusts increased.
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（End of FY）
Note: “Bonds” include trust beneficiary rights. Source: Bank of Japan
Cash and Deposits Investment Trusts
Bonds
Insurance and Pension Reserves
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According to the stockholding survey by stock exchanges, total investment assets held in all sectors as of the end of March 2007 amounted to ¥568.6 trillion, decreasing by ¥5.9 trillion year on year.
The number of individual stockholders reached a record high of 39.3 million, expanding by 1.2 million. However, the proportion and total amount of stockholdings by individual investors declined by 1.0 percentage points and ¥6.6 trillion, to 18.1% and ¥102.8 trillion respectively.
On the other hand, the proportion of stockholdings by foreigners marked a record high of 28%, increasing by 1.3 percentage points. ı IJı ijı Ĵı ĵı Ķı ķı ĸı Ĺı ĺı IJıı （ ıķ ıĶ ıĵ ıĴ ıij ıIJ ıı ĺĺ ĺĹ ĺĸ （
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Governments Investment Trusts
Financial Institutions Insurance Companies Business Corporations Foreigners Securities Firms
Stockholdings by Type of Investors (Market Value Basis)
Member Firms
1) Number of Member Firms
The number of regular members (securities irms) as of the end of March 2007 was 308, increasing by 19 from the year before mainly due to newcomers such as online securities irms and securities irms that specialized in sales of investment trusts of ailiated companies.
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Enrollment and Withdrawal (right scale) Regular Members (left scale)
（End of FY） Source: Japan Securities Dealers Association
Regular Members
Regular Members
The number of special members as of the end of March 2007 was 217, decreasing by 2 from the previous year. A breakdown by categories shows 6 city banks (unchanged), 14 trust banks (unchanged), 64 regional banks (unchanged), 46 second-tier regional banks (decreased by 1), 36 shinkin banks (unchanged), 16 life insurance companies (unchanged), 13 non-life insurance companies (unchanged) and others.
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:;<=>?@） Notes: 1. Data for 1994 is as of April 1, 1994, when special members enrolled in JSDA.
2. “City Banks” include city banks, long-term credit banks and trust banks. Source: Japan Securities Dealers Association
City Banks Regional Banks Second-tier Regional Banks Shinkin Banks and Others Life Insurance Companies Non-life Insurance Companies Others
S
pecial Members by Category
Special Members by Category
Member Firms
2) Securities Firms
’
Employees
The number of employees at the end of December 2006 was approximately 92,000, rising by about 4,700 from the year before.
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（thousands）
（End of CY）
Source: Japan Securities Dealers Association
Secur
ities Firms’ Employees
Securities Firms’ Employees
3) Securities Firms
’
Domestic Offices
The number of securities irms’ domestic branches as of the end of March 2007 was 1,534 increasing by 1.3% from the previous iscal year. The number of business oices was 372, rising by 14.8%. The number of domestic oices excluding head oices was 1,906, rising by 3.6% from the iscal year before.
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（thousands）
Securities Firms’ Employees
Securities Firms’ Employees
Member Firms
4) Securities Sales Representatives
The number of securities sales represen-tatives as of the end of December 2006 was approximately 433,000, an increase of about 16,000 year on year. The number of securities sales representatives belonging to securities irms was 76,000, increasing by roughly 4,000 from the year before. The number of securities sales representatives belonging to registered inancial institutions was 357,000, rising by about 12,000 from the year before.
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（End of CY）
Source: Japan Securities Dealers Association Special Members Regular Members
Securities Sales Representatives
Securities Sales Representatives
5) Securities Sales Representatives of Securities Sales Agents
The number of securities sales representatives of securities sales agents at the end of Decem-ber 2006 was 1,870, rising by 63.4% from the previous year. Among them, class-1 securities sales representatives numbered 536, or 28.6%. The remainder, 1,334 or 71.4%, represented class-2 securities sales representatives.
Among the 1,870 securities sales repre-sentatives, 222 were individual securities sales agents. The breakdown includes 87 class-1 securities sales representatives and 135 class-2 securities sales representatives.
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Securities Sales Representatives of Securities Sales Agents
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P
erformance of Securities Industry
1) Operating Revenues of Member Securities Firms
Looking at the overall performance of the industry (303 securities irms*) during the iscal year 2006 ended March 2007, the industry recorded total operating revenues of ¥4,686 billion, decreasing by 4.6% from the previous year due to the lower level of commissions and trading gain in light of the stagnation in the stock market.
Among operating revenues, commissions decreased by 7.5% to ¥2,957 billion and trading gain decreased by 20.5% to ¥857 billion. On the other hand, inancial revenues advanced 36.3% to ¥848 billion due to the increase of interest income from securities lending and margin transactions.
* Of a total of 307 securities irms at the end of March
2007, 4 domestic securities irms were excluded that were pre-startup operation or under business suspension.
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Note: Securities firms that were not in business as of the end of March in each year are excluded. Source: Japan Securities Dealers Association
Operating Revenues of Member Securities Firms
Operating Revenues of Member Securities Firms
2) Operating Expenses of Member Securities Firms
Operating expenses for the iscal year 2006 ended March 2007 increased by 14.2%, to ¥3,690 billion. Among operating expenses, transaction expenses rose by 9.3% to ¥587 billion, employment cost by 6.4% to ¥1,431 billion, real estate and equipment expenses by 13.2% to ¥300 billion and data processing and oice supplies expenses by 16.1% to ¥366 billion. These selling and general administrative costs, jumped by 8.9% to ¥3,043 billion. Financial expenses were ¥647 billion, up 48.3%, also rising signiicantly.
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（FY ended）
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P
erformance of Securities Industry
3) Current Profits/ Losses of Member Securities Firms
Current proits of the iscal year 2006 ended March 2007 substantially decreased by 40.3%, to ¥1,016 billion.
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（FY ended） Note: Securities firms that were not in business as of the end of March in each year are excluded. Source: Japan Securities Dealers Association
C
Current Profits/Losses of Member Securities Firms
4) Net Income/ Loss and ROE of Member Securities Firms
Net income for the iscal year 2006 ended March 2007 drastically decreased by 48.2%, to ¥588 billion. Return on equity (ROE) was 8.7%, a substantial worsening of 9% points compared with the previous iscal year's 17.7%.
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（%）
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Net )
ROE
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（FY
Notes: .
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P
erformance of Securities Industry
5) Net Income/ Loss by Type of Member Securities Firms
Looking at net income by category of irms for the iscal year 2006 ended March 2007, each category recorded substantial declines compared with the previous year's income: a 28.2% decrease to ¥333 billion in major securities irms, a 79.2% decrease to ¥72 billion in foreign securities irms and a 44.0% decrease to ¥184 billion in the rest of domestic securities irms.
ĮĴıı Įijıı ĮIJıı ı IJıı ijıı Ĵıı ĵıı Ķıı
Major Firms Foreign Firms Other Domestic Firms
（billion yen）
（FY ended） Notes: 1. Securities firms that were not in business as of the end of March in each year are excluded. 2. Major securities firms: Daiwa Securities, Co., Ltd., Daiwa Securities SMBC Co., Ltd., Nikko Cordial Securities I nc., Nomura Securities Co., Ltd., and other securities firms capitalized at a hundred billion yen or more Source: Japan Securities Dealers Association
Net Income/Loss by Type of Member Securities Firms
ıIJ ıij ıĴ ıĵ ıĶ
Net Income/Loss by Type of Member Securities Firms
6) ROE by Type of Member Securities Firms
Looking at ROE by category of irms for the iscal year 2006 ended March 2007, each category recorded substantially negative ROE compared with the previous year: a 7.3 percentage point decrease to 10.9% in major securities irms, a 6.5 percentage point decrease to 31.7% in foreign securities irms and a 5.8 percentage point decrease to 5.2% in the rest of domestic securities irms.
Įijı ĮIJı ı IJı ijı Ĵı ĵı Ķı
（％）
Notes: 1. Securities firms that were not in business as of the end of March in each year are excluded.
ıij ıĴ ıĵ ıĶ ıķ
（FY ended） Major Firms
Foreign Firms Other Domestic Firms
ROE by Type of Member Securities Firms
Statistical Data
Statistical Data
◉
Real GDP Growth Rate
（％）
Quarterly Real GDP Growth Rate
(Year-on-year comparison Private Demand Public Demand Net Exports
2001 １Q 2.0 3.0 2.5 -0.8
２Q 1.0 2.5 0.4 -1.0
３Q -0.3 0.8 0.4 -1.0
４Q -1.8 -2.1 1.1 -0.5
2002 １Q -1.9 -3.2 0.2 0.3
２Q -0.2 -1.7 0.9 0.9
３Q 1.5 0.7 1.1 0.7
４Q 1.7 1.2 -0.3 0.9
2003 １Q 1.3 1.5 -1.0 0.5
２Q 1.3 1.2 -0.2 0.4
３Q 1.1 0.8 -1.3 0.8
４Q 1.9 1.9 -1.8 0.9
2004 １Q 4.2 3.7 1.1 1.2
２Q 3.2 3.2 -1.5 1.2
３Q 2.9 3.3 -1.3 0.7
４Q 0.8 1.0 -1.1 0.3
2005 １Q 1.0 2.1 -2.1 -0.1
２Q 1.8 2.4 -0.1 0.0
３Q 2.1 1.9 2.1 0.2
４Q 2.7 2.2 0.5 0.9
2006 １Q 3.0 3.0 -0.9 0.9
２Q 2.1 2.2 -0.7 0.6
３Q 1.4 1.4 -2.7 1.0
４Q 2.2 2.5 -1.1 0.6
2007 １Q 2.5 2.5 -1.0 0.8
２Q 2.3 1.8 -0.3 1.0
Source: Cabinet Oice
Securities Market in 2006
Statistical Data
◉
Corporate Proits (all industries, all scale of businesses)
FY 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Current Proits
(trillion yen) 28 21 27 36 28 31 36 45 52 54
Current Proit to
Sales Ratio (% ) 1.9 1.5 1.9 2.5 2.1 2.3 2.7 3.1 3.4 3.5 Source: Ministry of Finance
◉
Consumer Price and Corporate Goods Price Indices
（％） CY 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Consumer Price Index
(excluding fresh food) 1.7 0.4 0.0 -0.5 -0.8 -0.9 -0.3 -0.1 -0.1 0.1 -0.3 Corporate Goods Price Index
(inal consumer goods) 0.5 -0.6 -1.4 -1.3 -1.4 -1.9 -1.6 -0.7 -0.1 0.7 0.3 Note: Figures are annual average except for 2007, which includes only up until June and is seasonally adjusted. Source: Ministry of Internal Afairs and Communications, Bank of Japan
◉
Employment Conditions
CY 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Unemployment Rate
(% ) 3.4 4.1 4.7 4.7 5.0 5.4 5.3 4.7 4.4 4.1 3.9 Job-ofers to Seekers Ratio
(Ratio(Times)) 0.72 0.53 0.48 0.59 0.59 0.54 0.64 0.83 0.95 1.06 1.04 Note: Data is annual average except for 2007, which includes only up until June and is seasonally adjusted.
Source: Ministry of Internal Afairs and Communications, Ministry of Health, Labour and Welfare
◉
Daily Average Stock Trading Value of TSE (1st Section) and Jasdaq
（billion yen）
CY 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
TSE 1st Section 434.3 388.6 726.6 978.3 812.3 775.8 971.0 1,316.7 1,874.0 2,598.0 Jasdaq Securities
Exchange 10.8 6.2 49.7 46.0 20.3 14.9 25.9 51.1 79.7 93.9 Note: Figures for Jasdaq Securities Exchange before 2004 come from the previous Jasdaq Market. Figures for Jasdaq
Market in 2004 were only for the period from January 1 to December 12. Source: Tokyo Stock Exchange, Jasdaq Securities Exchange
Statistical Data
◉
Equity Financing by Corporations
（billion yen）
CY 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Public Oferings 173 333 527 690 1,235 194 642 929 754 1,620
Rights Oferings 74 0 0 10 32 － 2 11 4 3
Private Placements and Others 607 1,209 9,531 1,223 838 1,558 2,801 2,113 2,435 1,165 Total 854 1,543 10,059 1,924 2,106 1,753 3,446 3,054 3,193 2,788 Notes: 1. Private placements and others include preferred stocks and private placements.
2. “-“ indicates nil.
3. Total igures of domestic stock exchanges.
4. Figures for Jasdaq Securities Exchange before 2004 come from the previous Jasdaq Market. Figures for Jasdaq Market in 2004 were only for the period from January 1 to December 12.
Source: Tokyo Stock Exchange, Japan Securities Dealers Association
◉
Newly Listed Companies and IPO Amounts
CY 2001 2002 2003 2004 2005 2006
Number of Newly Listed Companies 169 124 121 171 157 181 IPO Amounts
(billion yen) 368 147 347 421 402 594
Notes: 1. IPOs include oferings by foreign companies that are listed in Japan. 2. Total igures of domestic stock exchanges
3. Figures for Jasdaq Securities Exchange before 2004 come from the previous Jasdaq Market. Figures for Jasdaq Market in 2004 were only for the period from January 1 to December 12.
Source: Japan Securities Dealers Association
◉
OTC Bond Trading (Including Repos)
（trillion yen）
CY 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Total 3,385.7 2,606.7 3,836.7 4,061.1 4,058.0 3,665.9 5,110.2 6,481.4 6,758.2 9,153.0 JGBs 3,242.1 2,497.2 3,734.1 3,898.0 3,863.4 3,429.8 4,836.1 6,178.6 6,428.0 8,881.7 Short-term JGBs 2,089.5 1,421.4 2,606.9 2,621.9 2,243.2 1,489.9 1,933.6 2,179.2 1,817.5 1,872.1
Super-long-term,
Long-term, Mid-term JGBs 1,206.4 1,075.6 1,127.0 1,275.8 1,619.9 1,939.6 2,902.2 3,999.1 4,610.5 7,009.5 Others 89.8 109.7 102.8 163.4 194.9 236.4 274.4 303.1 330.2 271.3 Note: "Short-term JGBs" are the total of inancial bills and treasury bills.
Source: Japan Securities Dealers Association
Statistical Data
◉
Debt Financing by Corporations
（billion yen）
CY 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Straight Corporate Bonds 6,526 12,784 7,498 8,276 8,609 7,736 7,728 5,879 7,088 6,858 Convertible-type Bonds
with Subscription Rights 270 246 592 357 300 427 72 561 889 1,424 Bonds with Subscription Rights － － － － － － － － － － Total 6,796 13,030 8,090 8,633 8,909 8,163 7,800 6,440 7,977 8,282 Notes: 1. "Straight Corporate Bonds" include "Asset Backed Bonds".
2. "-" indicates nil.
3. Following the revision of the Commercial Code in 2002, "Convertible Bonds" were renamed "Convertible-type Bonds with Subscription Rights".
Source: Japan Securities Dealers Association
◉
Composition of Bond Issuance
（％）
CY 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
JGBs 57.6 64.0 70.4 71.3 77.1 81.3 80.8 82.2 81.9 83.3 Municipal Bonds 1.6 1.3 1.4 1.5 1.3 1.4 2.2 2.5 2.7 2.9
Gov.-guaranteed Bonds 2.5 1.7 2.0 3.3 2.8 2.3 3.4 3.9 3.4 2.1
FILP Agency Bonds － － － － 0.3 1.3 1.3 1.5 1.8 2.1
Straight Corporate Bonds 5.5 9.7 5.2 5.6 5.0 4.3 4.0 2.8 3.1 3.3
Others 32.8 23.3 21.0 18.3 13.9 9.4 8.2 7.2 6.9 6.4 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Notes: 1. Excluding private placement municipal bonds
2. "Straight Corporate Bonds" include "Asset Backed Bonds". Source: Japan Securities Dealers Association
◉
Amount of Bond Issuance
（billion yen）
CY 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
JGBs 67,824 84,804 102,050 105,996 133,970 147,831 154,686 175,268 186,155 175,684 Municipal Bonds 1,852 1,722 1,998 2,200 2,299 2,582 4,264 5,251 6,152 6,031
Gov.-guaranteed Bonds 2,939 2,270 2,966 4,854 4,815 4,216 6,476 8,243 7,821 4,434
FILP Agency Bonds － － － － 546 2,408 2,457 3,188 4,187 4,493
Straight Corporate Bonds 6,526 12,784 7,498 8,276 8,609 7,736 7,728 5,879 7,088 6,858
Statistical Data
◉
Net Assets Held in Investment Trusts
（billion yen）
End of CY 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Publicly Ofered
Investment Trusts 40,649 42,739 51,353 49,399 45,280 36,016 37,435 40,996 55,347 68,927 Real-estate
Investment Trusts － － － － 236 441 766 1,246 2,050 3,153 Private Placement
Investment Trusts － － 1,544 3,693 6,106 7,381 10,384 15,596 25,643 32,987 Total 40,649 42,739 52,897 53,092 51,622 43,838 48,585 57,838 83,040 105,067 Source: The Investment Trusts Association
◉
Net Assets Held in Publicly Ofered Contractual-type Securities Investment Trusts
（billion yen）
End of CY 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Stock Investment
Trusts 9,986 11,496 15,696 14,610 14,905 16,372 21,339 27,435 40,828 55,657 Bond Investment
Trusts 19,099 16,963 18,866 23,817 22,652 14,121 11,746 9,955 11,498 10,576 Money Management
Funds 11,563 14,279 16,790 10,971 7,722 5,521 4,350 3,606 3,020 2,693 Total 40,649 42,739 51,353 49,399 45,280 36,016 37,435 40,996 55,347 68,927 Source: The Investment Trusts Association
◉
Net Assets Held in Publicly Ofered Contractual-type Stock Investment Trusts
（billion yen）
End of CY 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Unit Type 1,222 740 573 373 617 697 1,161 1,799 1,945 1,875 Open Type
(excluding ETF) 8,763 10,755 15,122 14,236 13,398 13,165 17,216 22,522 35,180 49,665
ETF － － － － 889 2,509 2,962 3,113 3,703 4,116
Total 9,986 11,496 15,696 14,610 14,905 16,372 21,339 27,435 40,828 55,657 Source: The Investment Trusts Association
◉
Net Assets Held Private Placement Contractual-type Investment Trusts
（billion yen）
End of CY 2000 2001 2002 2003 2004 2005 2006
Stock Investment
Trusts 3,185 5,040 6,469 9,388 14,646 24,723 32,186 Bond Investment
Trusts 507 1,066 911 995 949 919 800
Total 3,693 6,107 7,381 10,384 15,596 25,643 32,987 Source: The Investment Trusts Association
Statistical Data
◉
Investments by Institutional Investors (Insurance Companies and Pension Funds)
（trillion yen）
FY 2001 2002 2003 2004 2005 2006
Securities other than Stocks 13.8 11.5 6.1 14.5 15.2 9.0 Stocks and Other Equities 2.2 0.3 -5.0 -2.8 -3.8 0.7
Foreign Securities 4.6 3.0 5.9 5.1 4.4 3.1
Source: Bank of Japan
5Investor Trends
◉
Investments by Individual Investors (Household)
（trillion yen）
FY 2001 2002 2003 2004 2005 2006
Securities other than Stocks -7.1 -6.3 -0.8 8.5 14.0 13.4 Stocks and Other Equities -1.4 0.0 -3.2 1.0 -1.8 -3.8 Foreign Securities 1.7 0.9 0.2 -0.4 -0.3 -0.7 Source: Bank of Japan
◉
Household Financial Assets
（trillion yen）
End of FY 2004 2005 2006
Cash and Deposits 775.5 770.3 769.9
Bonds 37.3 40.4 43.3
Stocks and Other Equities 132.1 195.9 187.5
Investment Trusts 38.0 55.0 68.4
Insurance and Pension Reserves 383.1 392.1 401.9
Others 56.6 58.8 56.2
Total 1,429.5 1,520.5 1,536.2
Statistical Data
◉
Stockholdings by Type of Investors (Market Value Basis)
（trillion yen） End of FY 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Individuals 58.5 62.4 82.9 68.9 61.0 48.6 75.5 78.1 109.4 102.8 Governments 0.6 0.6 0.5 0.5 0.5 0.5 0.7 0.7 0.9 1.8
Financial
Institutions 69.6 72.5 85.8 70.5 61.7 47.5 67.5 66.7 93.1 87.0 Pension Trusts 11.8 15.6 23.1 19.6 18.6 13.6 16.5 15.2 20.7 20.0
Investment Trusts 4.9 4.4 10.2 9.8 10.3 9.3 13.6 14.8 25.0 26.4
Insurance
Companies 43.4 43.1 49.2 38.5 31.6 21.9 29.5 29.2 42.3 43.2 Business
Corporations 75.9 83.5 120.1 77.4 67.5 50.7 80.4 84.5 121.4 117.5 Foreigners 41.1 46.5 85.9 66.5 56.7 41.8 80.6 91.5 153.5 159.2 Securities Firms 2.0 1.8 3.8 2.5 2.1 2.0 4.4 4.4 7.9 10.2 Total 308.0 330.8 461.9 354.7 310.5 236.4 369.2 385.6 574.5 568.6 Source: Tokyo Stock Exchange
◉
Composition of Household Financial Assets
（％）
End of FY 2004 2005 2006
Cash and Deposits 54.3 50.7 50.1
Bonds 2.6 2.7 2.8
Stocks and Other Equities 9.2 12.9 12.2
Investment Trusts 2.7 3.6 4.5
Insurance and Pension Reserves 26.8 25.8 26.2
Others 4.0 3.9 37
Total 100.0 100.0 100.0
Statistical Data
◉
Stockholdings by Type of Investors (Market Value Basis)
（％） End of FY 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Individuals 19.0 18.9 18.0 19.4 19.7 20.6 20.5 20.3 19.1 18.1
Governments 0.2 0.2 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.3
Financial
Institutions 22.6 21.9 18.6 19.9 19.9 20.1 18.3 17.3 16.2 15.3
Pension
Trusts 3.8 4.7 5.0 5.5 6.0 5.8 4.5 4.0 3.6 3.5 Investment
Trusts 1.6 1.4 2.2 2.8 3.3 4.0 3.7 3.9 4.4 4.6 Insurance
Companies 14.1 13.1 10.7 10.9 10.2 9.2 8.0 7.6 7.4 7.6 Business
Corporations 24.6 25.2 26.0 21.8 21.8 21.5 21.8 21.9 21.1 20.7 Foreigners 13.4 14.1 18.6 18.8 18.3 17.7 21.8 23.7 26.7 28.0
Securities
Firms 0.7 0.6 0.8 0.7 0.7 0.9 1.2 1.2 1.4 1.8
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Notes: 1. "Governments" include central and regional governments.
2. "Financial Institutions" do not include "Pension Trusts, "Investment Trusts", "Insurance Companies". 3. Figures cover all exchange-listed stocks excluding foreign stocks.
Source: Tokyo Stock Exchange
◉
Regular Members
End of FY 2002 2003 2004 2005 2006
Regular Members 281 266 267 289 308
Enrollment and Withdrawal -9 -15 1 22 19 Source: Japan Securities Dealers Association
Statistical Data
◉
Number of Special Members by Category
End of FY 1994 2004 2005 2006
City Banks 11 7 6 6
Long-term Credit Banks 3 2 2 2
Trust Banks 11 14 14 14
Government-ailiated
Financial Institutions 2 2 2 2
Regional Banks 64 64 64 64
Second-tier Regional Banks 65 48 47 46
Shinkin Banks 42 34 36 36
Shinkin Central Bank 1 1 1 1
Life Insurance Companies 18 17 16 16
Non-life Insurance Companies 21 13 13 13
Money Market Brokerage Companies 6 3 3 3
Foreign Banks 0 5 9 8
Securities Finance Companies 0 1 1 1
Credit Cooperatives 0 0 2 2
Other Banks 0 4 2 2
Public Corporation 0 0 1 1
Total 244 215 219 217
Notes: 1. Figures for 1994 are as of April 1, when special members enrolled in JSDA. 2. Before March 31 2005, “Other Banks” included foreign trust banking companies. Source: Japan Securities Dealers Association
◉
Number of Securities Firms' Employees
（thousands）
End of CY 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Employees 108.0 95.1 92.0 94.7 96.6 89.2 85.0 86.4 87.9 92.6 Source: Japan Securities Dealers Association
◉
Number of Securities Firms’ Domestic Oices
End of FY 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Branches 1,973 1,768 1,753 1,731 1,680 1,565 1,511 1,529 1,514 1,534 Business Oices 243 238 258 285 273 257 263 281 324 372
Statistical Data
◉
Number of Securities Sales Representatives
（thousands）
End of CY 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Regular
Members 72.5 62.6 69.8 72.8 75.1 72.0 67.5 69.2 71.9 76.0 Special
Members 213.1 225.7 292.8 345.6 367.4 363.4 362.9 356.3 345.3 357.5 Source: Japan Securities Dealers Association
◉
Number of Securities Sales Representatives of Securities Sales Agents
End of CY 2004 2005 2006
Class-1 153 341 536
Individual Securities Sales Agents 42 70 87
Class-2 266 803 1,334
Individual Securities Sales Agents 56 118 135 Source: Japan Securities Dealers Association
Performance of Securities Industry
◉
Operating Revenues of Member Securities Firms
（billion yen）
FY ended 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Operating Revenue 2,523.3 2,579.1 3,795.6 3,213.2 2,505.7 2,386.8 3,294.2 3,388.7 4,911.5 4,686.4 Commission 1,617.8 1,585.3 2,791.2 2,018.5 1,669.0 1,469.2 2,046.2 2,221.8 3,195.5 2,956.7 Trading Gain 429.6 552.0 680.6 771.3 401.1 549.9 871.8 723.3 1,078.0 856.7 Financial Revenue 475.5 441.0 323.1 423.4 433.6 362.3 369.0 434.5 622.3 847.9 Note: Securities irms that were not in business as of the end of March in each year are excluded.
Source: Japan Securities Dealers Association
◉
Operating Costs of Member Securities Firms
（billion yen）
FY ended 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Selling, General and
Administrative Expenses 2,062.1 1,967.1 2,209.5 2,265.0 2,266.7 2,040.3 2,221.0 2,319.9 2,793.9 3,689.9 Transaction Expenses 328.1 325.1 406.6 390.8 352.2 328.0 379.4 422.8 536.5 586.5 Employment Cost 921.3 911.8 1,110.0 1,135.8 1,116.2 972.8 1,096.7 1,105.9 1,345.6 1,431.0
Real Esate & Equipment Costs 290.9 292.2 284.5 294.0 302.4 278.5 266.4 262.2 265.7 299.9
Data Processing &
Statistical Data
◉
Current Proits/Losses of Member Securities Firms
（billion yen）
FY ended 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Current Proits/Losses -9.5 144.8 1,254.0 589.3 -17.3 135.7 793.2 758.3 1,699.8 1,015.6 Note: Securities irms that were not in business as of the end of March in each year are excluded.
Source: Japan Securities Dealers Association
◉
Net Income/Loss and ROE of Member Securities Firms
FY ended 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Net Income/Loss (billion yen) -215.3 -572.6 392.0 287.2 -348.9 -169.8 508.3 483.4 1,136.3 588.2
ROE (%) -3.9 -10.9 6.8 4.5 -6.0 -3.5 10.1 8.7 17.7 8.7 Notes: 1. Securities irms that were not in business as of the end of March in each year are excluded.
2. ROE is after-tax proits divided by average stockholders equity. Source: Japan Securities Dealers Association
◉
Net Income/Loss by Type of Member Securities Firms
（billion yen）
FY ended 2002 2003 2004 2005 2006
Major Firms 53.0 231.7 214.8 463.8 332.8
Foreign Firms -7.6 75.3 91.5 344.2 71.7
Other Domestic Firms -215.3 201.1 177.0 328.2 183.6 Notes: 1. Securities irms that were not in business as of the end of March in each year are excluded.
2. There were 7 foreign securities irms that transferred their business to domestic securities irms during iscal 2006.
Source: Japan Securities Dealers Association
◉
ROE by Type of Member Securities Firms
（％）
FY ended 2002 2003 2004 2005 2006
Major Firms 2.7 11.0 9.3 18.2 10.9
Foreign Firms -0.9 9.4 10.8 38.2 31.7
Other Domestic Firms -10.2 9.4 7.4 11.0 5.2
Notes: 1. Firms that were not in business as of the end of March in each year are excluded. 2. ROE is after-tax proits divided by average stockholders equity.
3. There were 7 foreign securities irms that transferred their business to domestic securities irms during iscal 2006.
