May 11, 2021

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Tokyo Inventory Trade Moves to Weed Out Tiny Corporations From Topix, Commence New Index | Investing Information

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TOKYO (Reuters) – The Tokyo Inventory Trade reported on Friday it will step by step remove corporations with current market capitalisation of significantly less than 10 billion yen ($96.59 million), or about 1 % of all detailed shares, from its key Topix index.

The exchange also mentioned it will start off new inventory indexes in April 2022 when it will reorganise its sector structure, now manufactured up of the enormous main board and three more compact sections.

The transfer came amid criticism that the trade is making it possible for numerous companies with limited growth prospective clients and weak governance expectations to continue being detailed on the major board, which a lot of argue is keeping back again gains in the Topix index.

The TSE claimed it will commence lowering the body weight of tiny caps shares in Topix from 2022.

The trade has claimed it will re-organise the bourse into a few sections – tentatively identified as prime marketplace, regular market and growth market respectively – in April 2022.

The key industry will have a a little bit stricter listing criteria than the latest principal board but analysts expect a substantial portion of almost 2,200 corporations now listed there will go to the prime sector.

The TSE claimed it programs to introduce new stock indexes and abolish some indexes, including TSE Moms Index and the second-part index, to replicate the future reclassification.

(Reporting by Hideyuki Sano Editing by Shri Navaratnam)

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