(March 31): The Tokyo Stock Exchange (TSE) placed 25 companies under supervision in a final step toward a wave of delistings.
The firms include machine tools maker Yamazaki Co and Bitcoin Japan Corp, the TSE said in a statement on Tuesday. That’s after the grace period for companies that failed to meet its listing standards ended this month.
The major move in the bourse’s reforms means that the firms first go under supervision, then the TSE will conduct a review. If they turn out to have not met the standards in the next couple of months, by mid-June the companies will be marked for delisting, and removed from the market in October.
The number of listed companies in Japan has been on a sharp downward trend due to increasing merger and acquisition activity, and deepening corporate governance reforms. The exchange’s latest step is likely to accelerate this momentum and may help enhance the appeal and competitiveness of the country’s stocks.
The bourse tightened its listing criteria as part of a market restructuring in 2022, putting in place a three-year transition followed by a one-year improvement period. Standards include having a minimum tradeable share market value and a certain level of turnover. In order to stay listed, companies must have met those standards by the end of March.
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