Though banks are selling shares, little is being transferred to the market, since banks sell largely to the government or the central bank which will hold them for years, or to the companies themselves, says Alexander Kinmont, a strategist at Nikko Citigroup in Tokyo.

ECONOMIST: Japanese stockmarkets

Bank of Tokyo- Mitsubishi, surpassed by Nikko's new top shareholder, Citigroup, was miffed.

FORBES: Mitsubishi is not amused

Nikko's 128 local branches would make great conduits for Citigroup's securities, mutual fund, banking and insurance products.

FORBES: Mitsubishi is not amused