Japan’s ruling party eyes activist hedge funds in proposed governance crackdown

Japan's ruling Liberal Democratic Party is considering measures to curb the influence of activist hedge funds and private equity firms, worried about coordinated efforts in take-private deals. This potential regulatory shift could significantly alter the landscape of shareholder engagement in Japan, which has seen growing activity in this area. The move underscores the government's intent to maintain control over corporate governance, reflecting broader concerns about foreign investment practices and their impact on local businesses.