The Nihon Keizai Shimbun (Nikkei) reported that the number of companies to be delisted from the Tokyo Stock Exchange this year is expected to reach 94, the highest since 2013. According to Nikkei, this figure represents a 54% increase compared to the previous year, based on a survey of companies delisted from the prime, standard, and growth markets of the Tokyo Stock Exchange.
As the number of delistings increases, the total number of companies listed on the Tokyo Stock Exchange is expected to decrease by one to 3,842 by the end of the year compared to last year. Nikkei noted that this marks the first reduction in the number of listed companies since the Tokyo Stock Exchange’s current system was established after its merger with the Osaka Stock Exchange in 2013.
Between 2013 and 2023, the number of listed companies on the Tokyo Stock Exchange exhibited a trend of increasing by about 40 companies annually. Nikkei analyzed the reason for the increase in delistings, stating that many companies voluntarily withdrew from the stock market to enhance managerial freedom or due to being acquired by other companies or investment funds.
Furthermore, the newspaper reported that the Tokyo Stock Exchange is promoting reforms to increase the attractiveness of the Japanese market by tightening listing requirements and urging companies to manage with awareness of their stock prices. It also predicted that the number of companies delisting will remain high after next year.
[Photo source: Kyodo=Yonhap News]