Tokyo Stock Exchange overhauls Topix: ~700 delisted, 35 added

The Tokyo Stock Exchange plans a major reshuffle of its Topix index, removing about 700 firms and adding 35 new ones. The move aims to attract more investors and push reforms in trading and governance while the exchange maintains ongoing trading activity.

What is changing in Topix

The Topix index will drop from its current level to about 986 stocks, a reduction of roughly 40%. This means many small- and mid-size companies will no longer be part of the benchmark that many funds use to measure performance. The changes are described as the first major reshuffle tied to broader reforms at the Tokyo Stock Exchange, including trading platform improvements and governance efforts.

Who is affected

Companies that stay in the Topix will be those still meeting criteria for inclusion, while removed firms will depart the index and lose representation in this benchmark. The news notes specific entrants and exits; for example, Trial Holdings, Workman, and Tier IV are set to join, while Pasona Group and Tsubaki Nakashima are slated to leave. Removal is reported to be permanent for the index, with removed stocks to fall to zero in the Topix by July 2028, affecting index-based funds and investors tracking this benchmark.

Practical next steps for readers

Investors using the Topix for benchmarks or fund strategies should monitor which firms are added or removed, and how the index composition shifts. If you hold funds that track Topix-based benchmarks, expect adjustments in how the index is weighted and which companies drive performance. For individual investors, review any holdings tied to index funds and consider whether your diversification remains aligned with your goals as the index composition changes. Market participants should also watch for ongoing reforms tied to trading platform upgrades and governance improvements at the Tokyo Stock Exchange that accompany this reshuffle.

Limits and questions to consider

Details such as exact inclusion criteria, the timing of the final reshuffle, and how funds will adjust index weights are part of the reform plans. The source notes that the Topix will be redefined as part of the TSE’s broader reforms, but it does not specify the day-by-day mechanics for all investors. Readers should refer to official updates from the Tokyo Stock Exchange and JPX Market Innovation and Research for precise dates and methodology as they are announced.

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