Thousands of new Japanese clients will be investing in the Philippine equity market via online transactions under a newly signed deal with stock brokerage Regina Capital Development Corp. (RCDC).
Regina Capital has forged an agreement with Japan’s Seven Seas Property Corp. that is expected to link some 50,000 Japanese investors online to the Philippine market, said Fernando Martinez, head of sales at RCDC unit Regina Online Investing (ROI).
“This agreement with our Japanese partners will make them our introducing brokers in Japan. This is a first of its kind in the county since, ordinarily, it is the Filipino investors who are the ones who go out to gain access to the capital markets of other countries. This time, it is the foreign investors who are coming in to us through ROI,” Martinez emphasized.
Yusuke Uejima, Seven Seas chief marketing officer, said his company decided to offer Philippine equities to its Japanese clients who are looking at investment opportunities in the Philippines. He said Japan’s stock market has matured, with the little elbow room for gains compared to the emerging Philippine market.
“We are primarily catering to Japanese investors who want to invest in the property sector in the Philippines. We cater to them. However, since they can only purchase condominium units because of the prohibition against foreigners owning other real estate properties in the Philippines, they want to broaden their interest in your country. Thus, they are looking at the Philippine stock market as an additional investment,” Uejima said.
Seven Seas has been looking at the Philippines for the last five years and has witnessed how the country has posted enormous growth, he said.
“Japanese investors are looking for further investment since our market and economy have become mature that the yield it promises has become very low,” he added.
Seven Seas has at least 50, 000 Japanese clients, mostly at least 30 years old and are eager to invest in the Philippines’ publicly listed companies.
“We are expecting an initial average stock market investment of P1 million to P2 million per client. All these 50, 000 clients of ours have expressed serious interest in plunging into the Philippine stock market,” he said.
Luis Limlingan, managing director at RCDC, said the Philippines’ capital markets remains “untapped” and has more growth potential.
“Only a million people are actively trading in the country’s stock market, despite having at least a 100 million people. When I say actively, that means they are trading at least once a year. So, of that, about a million . . . Significantly less are trading online. This is where we want to get a bigger share,” Limlingan added.