Why Japan’s bond moves could see shift in East Asia’s financing model

MacroscopeWhy Japan’s bond moves could see shift in Asia" class="entity-link entity-location" data-entity-id="14644" data-entity-type="location">East Asia’s financing modelJapanese authorities are promoting the domestic corporate bond market as an alternative for firms seeking funding without losing control3-MIN READ3-MIN0ListenPublished: 4:30pm, 18 Apr 2026Updated: 5:33pm, 18 Apr 2026East Asia’s “economic miracle” in the post-World War II period was predicated upon a number of factors, such as the region’s export-led growth model, but critically it also depended on an assured supply of capital to finance business investment.One source of such finance was bank loans, the supply and direction of which can be officially influenced by various means rather than being chiefly market-determined. Even today, bank loans account for most of the business financing in Japan, the country that was at the vanguard of the Asian economic miracle.Demand for funds to finance not only capital investment projects but also the rationalisation of industry structures can outstrip supply. Moves Japan is making now to meet this deficit without losing control over the restructuring process could influence financial development more widely in Asia.Select VoiceSelect Speed0.8x0.9x1.0x1.1x1.2x1.5x1.75x00:0000:001.00x