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Third Point leads criticism of Japan’s foreign investment law

Lack of details on enforcement sparks trepidation among investors

TOKYO -- Continued uncertainty surrounding details of a new law on foreign investment is likely to dent appetite toward Japan, experts warned.

Japan's parliament last November revised the Foreign Exchange and Foreign Trade Act, which requires foreign investors to submit prior application to buy shares above a certain threshold in companies deemed crucial to national security. The revision lowers the threshold to 1% of the shares from the previous 10%.

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