Japan Inc. steps up share sales amid corporate governance push

TOKYO -- Japanese companies are liquidating more of their stock portfolios amid growing pressure to get rid of unproductive assets.

Cross-shareholdings, in which companies own shares in each other, have historically been a way for companies in Japan to shield themselves from hostile takeovers and market uncertainty. But critics say the practice is partly to blame for Japanese companies' slow pace of reform and lackluster stock performance. About 12% of shares in Japan's benchmark Topix index are held by listed companies, compared with 4.8% in Europe and 0.2% in the U.S., according to brokerage firm Jefferies.