A quick Firefly update

Thank you for subscribing to Firefly, which launched in late February 2026. We have put together a brief recap of our recent stories below, in case you missed them. As we look ahead, a few themes are keeping us occupied: the limits of new CG and company law reform in Japan, the role of sovereign wealth funds in the region, and how to navigate red flags hiding in plain sight at corporates. As war in the Middle East rages on, we will also look at the impact on energy economics in the region: our key takeaway is that there is no one Asia narrative.

Jamie is recently back from Hong Kong and Japan with a sense that the mood is more positive than outsiders realise. It is déjà vu all over again in Hong Kong with a booming IPO market and a hope that the property market has bottomed out (finally). Yet competition from Shenzhen continues to undermine the city’s restaurants and bars, all paying overpriced rents. If the Greater Bay Area ever become a single market for property, the impact on Hong Kong could be ugly. Meanwhile, no one wants to talk about politics.

While Japan is facing its share of challenges from geopolitical tensions and the Iran War, most remain optimistic their country is going in the right direction. A widespread view is that the major CG reforms over the past decade have contributed to the strength of the stock market and improved corporate vitality, yet concerns persist about the depth of keystone measures like independent boards and the value of special committees in privatisations. An online briefing we gave in late March to the members of the Japan Stewardship Forum also raised questions about the latest revision of the CG Code, new METI thinking on takeovers, and the role of activists.

A recap of our recent articles:

Rule changes for "foreign private issuers" in the US are making New York a more hostile environment for PRC firms: Reform is a dish best served cold

Hong Kong small caps are becoming very adept at staying within the rules while causing significant damage to shareholders: The chutzpah of Hong Kong small caps

A major legal case to watch is unfolding in Abu Dhabi: Litigation watch: Bank of Baroda

Governance, what governance? The privatisation of Toyota Industries Corporation (TICO) under the spotlight: Toyota tests the system, falls short, TICO take-private: And the winner is... and Fudosan finally breaks through.

Government policy and investment is driving Asian capital markets: Macro governance, not AI, is the main story.

And don’t forget:

A stock take of the protracted legal battle over the squeeze-out of Jardine Strategic shareholders: Did Jardines shortchange shareholders by US$4 billion?

Is the legal rift causing Jardines to soften its stance on shareholders? Mandarin Oriental and the ghosts of governance past

The dissenter action landscape in Cayman and Bermuda is heating up: Jardines and the economics of dissent

Landmark legislative changes take effect in Japan this May on the large shareholder reporting system and joint holder (concert party) rules: Keep your eyes on the prize, Unshackling investors in Japan (1), and Unshackling investors in Japan (2)

Jamie, Jane and Melissa