TSE Announces Draft Market Realignment Plan

Economy

Tokyo, March 27 (Jiji Press)--The Tokyo Stock Exchange announced on Wednesday a draft plan to realign its current four stock trading sections into three, as part of its efforts to lure more investment from both at home and abroad.

Under the plan, one of the three envisioned sections will list blue-chip companies that are major investment targets of pension funds and other institutional investors. One of the other two sections will be for companies whose shares are traded by general investors, and the other for emerging companies with growth potential.

The TSE, which currently has the first and second sections, and the Jasdaq and Mothers markets, has been discussing how to realign its markets through a panel of experts set up last autumn.

It will later map out criteria on which companies will be listed on which sections, based on their governance systems, profit levels, market capitalization and other factors.

The TSE will set a transitional period of several years for the switch to the realigned markets.

[Copyright The Jiji Press, Ltd.]

Jiji Press