Japan Small Caps Face Survival Race as Topix Cull Looms

The Topix stock index is undergoing revised eligibility rules that will result in the gradual removal of more than 600 companies, representing over a third of current constituents, according to analyst estimates. The Japan Exchange Group implemented the new criteria to align listing standards with market capitalization and liquidity requirements. Companies below the new thresholds will be transitioned out of the index over a specified period rather than removed immediately.

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