Cooperating bank plans to reduce its stake by approximately 300 billion yen, causing Nintendo's stock price increase to narrow.

Nintendo's stock price increase has narrowed, partly due to market expectations that its partner banks may reduce their strategic holdings of this Kyoto-based gaming giant by about 300 billion yen (approximately 1.9 billion US dollars). According to sources familiar with the matter, financial institutions such as Mitsubishi UFJ Bank and Kyoto Bank are expected to sell their stakes, while Nintendo plans to conduct a stock buyback. A spokesperson for Mitsubishi UFJ Bank maintained their consistent stance and declined to comment on specific corporate matters. Nintendo and Kyoto Bank have not yet responded to requests for comment. As of the time of writing, Nintendo's stock price increase has narrowed to around 3%, briefly hitting a high of 4.1% during trading. The Kyoto Financial Group (including Kyoto Bank) has long advocated that holding shares in enterprise clients helps provide a stable foundation for innovation. However, the group and other financial institutions are facing increasing pressure from regulators and investors to reduce such cross-shareholdings considered detrimental to good corporate governance. Toyo Securities analyst Hideki Yasuda stated: "If accompanied by a stock buyback initiative, this reduction in holdings has limited impact on stock liquidity. This move fully complies with the requirements of regulators and the Tokyo Stock Exchange regarding reducing strategic holdings and is not particularly unique." According to corporate disclosure documents, as of the end of September last year, Kyoto Bank held about 4.19% of Nintendo's shares. Data shows that the total amount of stock offerings in the Japanese market in 2025 has reached approximately 32 trillion yen, approaching the historical high of 36.6 trillion yen set in 2024.