HONG KONG, Jan 12 (Reuters Breakingviews) – An overhaul of Japanese stocks has culled the top class designed to lure foreign funds by 16%. Yet because the criteria prioritised size more than better governance, 1,841 still made the cut. A club needs exclusivity to justify premier status. This falls far short.
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CONTEXT NEWS
– Listed companies in Japan have been reorganised into three tiers by Japan Exchange Group, owner of the Tokyo Stock Exchange, with the aim of simplifying the market’s structure.
– The results, which grouped companies into “prime”, “standard” and “growth” categories, were announced on Jan. 11. A total of 1,841 were awarded prime status, a reduction of 16% from those currently listed on the current top-class First Section.
– The new tiering takes effect in April.
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Editing by Pete Sweeney and Katrina Hamlin
Our Standards: The Thomson Reuters Trust Principles.
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