Nikkei Previews: run against them to get your face ripped off!
Japanese second quarter results season peaked last week with the Nikkei newspaper playing its role as broadcaster of results days in advance of the actual company announcements.
Japanese regulators continue to turn a blind eye to the now common “Nikkei previews” which in some countries amount to disclosure violations and outright information asymmetry.
Nicholas Smith of CLSA in Tokyo quoted as saying: “It’s absolutely assumed that if you try to run against it (the Nikkei previews), you’ll get your face ripped off.”
Some say the previews are a harmless hallmark of a free press, others say the practice hurts Japan at a time when the government is keen to sustain the newfound interest of foreign investors.
Japan Exchange Group, operator of the Tokyo Stock Exchange, declined to comment on individual press reports, and said it had no comment on the “newsgathering methods” employed by the media.
A government-sponsored report to be published this week on short-termism in markets is expected to draw attention to the previews problem.
“It’s a fairly basic tenet of a well-functioning market that price-sensitive information should be made available equally and contemporaneously amongst all market participants.” says David Smith, Singapore-based head of corporate governance at Aberdeen Asset Management Asia.
Source: ft
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