The new TOPIX will begin operating in October, selecting constituents with an emphasis on liquidity. The number of constituents is expected to be reduced to approximately 60% of its current level by July 2028, with 35 companies, including McDonald's Holdings Company (Japan), Ltd., expected to be newly added.
A new set of standards for the Tokyo Stock Price Index, or TOPIX, is scheduled to take effect in October, shifting to a system that selects constituents with an emphasis on liquidity. The number of constituents is expected to be reduced to approximately 60% of its current level by July 2028.
The new TOPIX is expected to select constituents based on 2 criteria, with priority initially given to an indicator showing how frequently a stock has been traded. This could result in a greater focus on highly liquid stocks.
The door will also be opened to companies outside the Tokyo Stock Exchange Prime Market, and new additions are expected to be made without being constrained by the existing framework. Against this backdrop, approximately 35 companies, including McDonald's Holdings Company (Japan), Ltd., are increasingly expected to be newly added.