Beginning Monday, bourse operator
"This is simply the start of our new vision,"
The reform comes as
The top-tier Prime section, equivalent to the current First Section, will have a greater focus on liquidity to attract various institutional investors.
The Standard section will be created through the merger of the Second Section and the Jasdaq market, mainly for midsize companies, while the Mothers market for up-and-coming companies will be renamed the Growth section.
However, the reorganization has garnered criticism from some foreign investors who say the shakeup is unlikely to lead to significant changes as the majority of firms are moving from the former First Section to the Prime section.
"The goal of the restructuring was to clarify the theme of each trading tier and encourage the steady growth of businesses," as opposed to whittling down the number of listed companies, Yamaji said.
To qualify to be on the Prime section, companies need to have at least
Those that failed to meet the benchmark, however, were able to submit a business plan demonstrating growth to meet the necessary standards.
As of Wednesday, a total of 1,839 firms, or around 84 percent, were slated to be placed on the highest trading tier out of the 2,177 now listed on the First Section.
As the bourse relies on foreign investors, Yamaji said it was paramount for Japanese businesses to engage with them by increasing English accessibility, noting that many firms could benefit by creating more English content for their websites and documents.
Approximately 60 percent of the daily trading volume on the
==Kyodo
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