Skip to content
Subscriber Only

Threat of Demotion Spurs Japan Firms to Shake Up Stock Register

  • Tokyo Exchange reshuffle forcing firms to boost free float
  • Japan companies boosting corporate actions to stay among elite
Japan Exchange News Conference As TSE President Koichiro Miyahara Steps Down
Photographer: Toru Hanai/Bloomberg
Updated on

Japanese policymakers may have found the one thing that can force executives to simplify their arcane capital structures -- threatening their status in the elite grouping of Japan’s top firms.

With just months to go until a key deadline in the Tokyo Stock Exchange’s once-in-a-generation makeover, companies are being forced to divest stakes, unwind tie-ups or cancel treasury stock to ensure that they remain among the country’s elite listed firms.