Japan's Topix stock index is poised for its largest overhaul, with analysts estimating that more than 600 companies — representing over a third of its constituents — are likely to be gradually removed under new eligibility rules.
The restructuring follows new requirements for firms listed on the Tokyo Stock Exchange. Companies whose free-float market capitalization ranks in the bottom 3% of listed firms will be phased out over a two-year period beginning in October.
More than 600 companies — over a third of its constituents — likely to be gradually removed.
Analysts suggest that these changes will result in the removal of more than 600 companies during this overhaul process.
