Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Activist investment rising in Asia, led by local players - JP Morgan

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/07/2018 | 02:28am CEST
Pedestrians cast shadows as they make their way at a financial district in Tokyo

HONG KONG (Reuters) - Activist investing in Asia is rising steadily, driven more by local players rather than headline-grabbing foreign firms, as the region's regulators pay greater attention to corporate governance, according to research from JP Morgan.

Last year, there were 106 activist campaigns in Asia, versus 94 the previous year and just 10 in 2011, the investment bank said, citing data from Activist Investor and Shark Repellent.

Domestic players accounted for almost two-thirds of activist campaigns between 2011 and 2017, JP Morgan said.

"In Asia, as regulators look to protect the interests of minority shareholders, corporate governance has risen up the agenda ... activist investors now have more power to push for change in the companies in which they have invested," said David Hunker, JP Morgan's head of shareholder activism defence.

In Japan, Prime Minister Shinzo Abe has been a public advocate of corporate governance, providing a boost to activists.

Earlier this year, Sparx Asset Management urged synthetic fibre maker Teikoku Sen-i to triple dividend payouts. The proposal was rejected, but the company separately announced a small increase in dividend, for which Shuhei Abe, founder and CEO of Sparx, claimed some credit.

Similar trends are emerging in other parts of Asia.

Hong Kong Exchanges and Clearing finalised new rules recently for capital raisings by listed issuers aimed at "restricting abusive practices ... and protecting the interests of minority shareholders".

South Korea's Financial Services Commission has also announced a plan to facilitate and encourage minority shareholder participation at meetings for listed companies.

Another factor in the rise of shareholder activism is the growing presence of large global institutional investors among Asian listed companies' top shareholders, Hunker said.

These investors have already shown a willingness to support activist investors, if not in Asia, then at least elsewhere in the world, he said, adding that such firms are certainly willing to disagree with management decisions.

U.S. activist fund Elliott Management has challenged South Korea's top two family-run conglomerates, most recently Hyundai Motor, over better corporate governance and returns to shareholders.

BlackRock said in its Asia Pacific investment stewardship report for the fourth quarter of last year that of the 8,390 proposals it had voted on in the three months, it had voted against management recommendations on 7 percent of them.

(Reporting by Alun John; Editing by Himani Sarkar)

By Alun David John

Stocks mentioned in the article
ChangeLast1st jan.
HONG KONG EXCHANGES AND CLEARING LIMITED -0.73% 218.8 End-of-day quote.-9.51%
HYUNDAI MOTOR CO --End-of-day quote.
SPARX GROUP CO., LTD. -2.80% 243 End-of-day quote.-24.06%
TEIKOKU SEN-I CO., LTD. -5.29% 2345 End-of-day quote.3.76%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
05:16pNEWS HIGHLIGHTS : Top Global Markets News of the Day
DJ
05:16pNEWS HIGHLIGHTS : Top Financial Services News of the Day
DJ
05:16pNEWS HIGHLIGHTS : Top Company News of the Day
DJ
05:11pKILMARNOCK FOOTBALL CLUB : Kirk Broadfoot on what fuels him and feeling the love
PU
05:11pCDC RELEASES EDUCATIONAL MATERIALS FOR TEACHERS FOR USE WITH “JUNIOR DISEASE DETECTIVES : Operation Outbreak” Graphic Novel (https://www.cdc.gov/flu/spotlights/operation-outbreak-novel.htm)
PU
05:08pU.S. Leading Economic Indicators Rose in July
DJ
05:01pNATIONAL FARMERS' UNION OF SCOTLAND : Livestock Sector Vulnerable to Brexit ‘No Deal’, says UK Farming Unions
PU
04:56pYCEA YORK COUNTY ECONOMIC ALLIANCE : Sixteen Barley Snyder Attorneys Named to “Best Lawyers” List; Werner Named a “Lawyer of the Year”
PU
04:51pNATIONAL ENERGY BOARD GOVERNMENT OF CANADA : Prices, Trade and Feature Articles – Update
PU
04:50pTesla shares sink after analysts warn on Model 3 margins, Musk interview
RE
Latest news "Economy & Forex"
Advertisement