[Japanese Regulators Urge Companies to Use Cash for Growth Instead of Shareholder Returns] According to a report by Jinse Finance, on May 25, Japanese financial regulators are urging domestic listed companies to allocate their cash reserves more toward long-term business investments rather than rewarding shareholders through buybacks and dividend increases. Tatsufumi Shibat, a senior official at Japan's Financial Services Agency, stated in an interview that in addition to cash, executives should also consider leveraging cross-shareholdings and real estate assets to drive growth. He noted that regardless of where Japanese companies are on the growth curve, they tend to prioritize shareholder returns. 'I don’t think investors would make such demands of companies in a rapid growth phase,' he said in the interview. Redirecting the substantial wealth held by corporations and households in Japan to fund future expansion is one of the core pillars of Japanese Prime Minister Sanae Takaichi's efforts to revitalize the Japanese economy. She has long criticized the cash reserves sitting on corporate balance sheets.