1902
In May Seibei Fujimoto begins operations as Fujimoto Bill
Broker - the first bill broker services in Japan and the company
that later will become Daiwa Securities. The economy is in
recession, many find the financing, investment and trading
practices of banks inconvenient. Seibei Fujimoto allows brokers
to handle their own accounts without intermediaries. He makes
dealing between banks and merchants easier. This new way of
providing financial services leads to the first call money
market in Japan.
1904
Trading in the call money market expands. Fujimoto Bill Broking
services grows rapidly and sells government securities to
London. This is the company’s first step in an international
direction.
1906
Fujimoto Bill Broking becomes a limited company.
1907
Fujimoto Bill Broking starts banking and brokerage services
and changes its name to Fujimoto Bill Broking Bank.
1909
Dai-Nippon Seito, a sugar producing company, goes bankrupt
and Fujimoto Bill Broking Bank, its largest creditor, is forced
to implement painful reorganisation. Fujimoto Bill Broking
Bank has a social responsibility to stay in business. Mr Fujimoto
is trusted by the public, so Fujimoto Bill Broking Bank is
able to rebuild quickly and recovers by 1910.
1911
Fujimoto Bill Broking underwrites by itself the Osaka Agricultural
and Industrial bond. This is the first time a non-zaibatsu bank had been sole underwriter for a bond.
1914
World War I starts. The number of bonds issued expands so
the Fujimoto Bill Broking Bank sets up one of the first securities
department and leads the bank to become an expert in securities
and bonds.
1918
The end of WWI marks the beginning of the true internationalisation
of the Japanese financial industry. Fujimoto Bill Broking
Bank buys English-French bonds in New York and sells them
to Japanese investors. This is the first time a Japanese securities
house has set up an international account. Fujimoto Bill Broking
Bank expands its overseas securities transactions.
1924
The Fujimoto Securities Company in New York is set up.
1927
Fujimoto Bill Broking Bank develops steadily. New banking
regulations influence the market. Financial services are divided.
Now it is no longer possible to combine banking, securities
dealing and underwriting. Fujimoto Bill Broking Bank chooses
securities business as its main business area.
1933
Fujimoto Bill Broking Bank changes its name to Fujimoto Bill
Broker Securities Company in order to comply with new regulations.
1934
Fujimoto Bill Broking Securities Company stock division opens.
Japanese stock market is booming (active public offerings
and capital increases are spurred by a wartime economy and
heavy industrial investment). Fujimoto Bill Broking Securities
Company sees its volume of stock trading increase. It is ranked
as one of the top Japanese securities firms. At the same time
Fujimoto Bill Broking Securities Company continues to be an
important force in the call money market.
1937
A highly speculative Tokyo Stock Exchange (with average price
of transactions being high) is now out of the reach to ordinary
investors. Fujimoto Bill Broking Securities Company establishes
Fujimoto Securities Investment Group where it is feasible
and safe for the average investor to participate in the securities
market by pooling small investors' capital. This system is
similar to the British unit trust but different from an investment
trust. Fujimoto Securities Investment Group - the forerunner
of today's investment trust - collects ¥12.7 million from
1937 to 1940. But, the investment trust law forces Fujimoto
Bill Broking Securities Company to close Fujimoto Securities
Investment Group.
