Japan'S Implementation Of Negative Interest Rate Policy Has Led To A Turning Point In Department Stores.

Japan implemented negative interest rates to save public deposits. The major department stores took the opportunity to start the campaign to attract gold, and offered attractive members' bonus schemes. The annual interest rate was up to 8%, which was more favorable than the bank interest rate, and the number of applications for last month's membership increased sharply.

According to the financial times, the number of applications for membership cards in Japan's department stores such as San Yue, Tai Wan and Gao Dao Wu increased by 100% to 200% in February compared with the same period last year.

Under the current negative interest rate, department stores store 5% to 8% per year.

Even if forced to shop at a fixed store, it is also cost-effective than putting money in the bank.

From this point of view,

The policy turned out to be the gospel of department stores.

The share price of department stores has rebounded from a 2 month low selling pressure, which has also encouraged the market trend.

In the past 3 weeks, the index of Eastern card rose 15%, or the highest since November 2014.

CLSA, Mitsui Sumitomo SMBC Nikko and Daiwa have recently pointed out that the aura of Andouble economics has vanished in Tokyo's co sponsored global investor conference.

The negative interest rate of the central bank is more threatening than the growth opportunities for the economy.

Investors at the meeting also said that the stronger interest rate policy and the yen would only make investment less attractive than the market outlook of last year.

Nomura Securities strategist Matsuura Zuo (Hisao Matsuura) announced in a report to investors that the profit forecast for large enterprises will be greatly reduced, suggesting that market investors should be psychologically prepared. These enterprises' frequent profit in the fourth quarter (up to the end of March) is nearly 10%.

Other winners of the negative interest rate policy also include construction and real estate, and the food and pharmaceutical industries can be classified as defensive stocks.

But the financial sector and the insurance industry are the top victims of negative interest rates. Even the more optimistic analysts expect the net profit of banks to fall by 7% under the impact of lower lending rates and lower yields on Japanese government bonds.

Portfolio strategist points out that although negative interest rate helps to reduce leverage and encourage lending, and then ignite the growth momentum of the construction industry and the housing market, it hinders the development of other industrial sectors.