Some 40% of Tokyo companies disclose capital plans, as investors hope for big changes (updated)
15/01/2024 07:00
(Adds details throughout, changes slug from JAPAN-STOCKS/JSE)
TOKYO, Jan 15 (Reuters) - The Tokyo Stock Exchange (TSE)
on Monday said 40% of companies listed on its prime section had
disclosed plans to improve capital efficiency, with another 9%
considering such plans, in what investors hope will be a sign of
more change to come.
For the first time, the top bourse in the world's
third-largest economy has released a list of companies that have
complied with its request to lay out plans on how they intend to
improve their use of capital, as part of a broader governance
push.
The move is one of a number of measures by the bourse and
the government that have helped propel the Tokyo market to its
highest level in more than three decades, fuelling investor
optimism that Japan Inc was becoming more serious about
returning more money to shareholders or shedding non-performing
assets.
The release of the list, which the TSE plans to update
monthly, will effectively put pressure on companies that have
not heeded its call. That, experts say, will also help spur the
reform of an market where nearly half of listed firms trade
below book value.
According to the list, 40% of the 1,656 companies listed on
the TSE's top "prime" section have disclosed plans to better
allocate capital and improve valuations, while another 9% have
such measures under consideration.
The number of firms with disclosed measures shot up from the
TSE's tentative survey in July, which saw only 20% of the
prime-listed companies had disclosed such steps.
The TSE has set no deadline, saying it is not asking for
quick fixes but long-term strategies to improve valuations. The
list will be updated monthly.
(Reporting by Makiko Yamazaki, Brigid Riley, Anton Bridge;
Editing by
David Dolan)
((david.dolan@thomsonreuters.com; +81 3 4563 2708;))