Mizuho Financial Group (MFG) Stock Gains on Plan to Sell Shares of Other Companies

NEW YORK (TheStreet) -- Shares of Mizuho Financial Group (MFG) were gaining 3.6% to $4.38 on heavy trading volume Tuesday after the Japanese bank reaffirmed its plan to cut the number of shares it owns in other companies.

Mizuho Financial reaffirmed its commitment as a response to new Japanese governance rules, according to Bloomberg. The new rules require Japanese companies to justify why they hold shares in other companies to ensure they use their capital affectively.

"It's important to realize gains on shareholdings," CFO Junichi Shinbo said at the bank's annual meeting on Tuesday. "We will start the unwinding process soon and sell shares that need to be sold."

The bank promised to gets rid of cross-shareholdings that aren't "meaningful" on June 1.

About 3.7 million shares of Mizuho Financial were traded by 9:40 a.m., above the company's average trading volume of about 346,000 shares a day.

MFG ChartMFG data by YCharts

More from Markets

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Video: One-on-One With Pluralsight's CEO Following Its Successful IPO

Video: One-on-One With Pluralsight's CEO Following Its Successful IPO

CBS-Viacom Battle Comes to a Head; FDA Approves Novartis Migraine Drug --ICMYI

CBS-Viacom Battle Comes to a Head; FDA Approves Novartis Migraine Drug --ICMYI

Listen: Here's What You Need To Know About ETFs Today (Hint: They're on Fire!)

Listen: Here's What You Need To Know About ETFs Today (Hint: They're on Fire!)

Cramer and His Team Stick to Their Disciplines -- Even When It's Disappointing

Cramer and His Team Stick to Their Disciplines -- Even When It's Disappointing