Japan has had nearly as many listed companies as the U.S. with an economy only a seventh the size, and for more than a decade, the number only rose. This year, the trend sharply reversed.
The number of Japanese firms trading on the Tokyo Stock Exchange is on track to drop by 58 to 3,778 by the end of the year, according to data from the bourse as of Wednesday. This is a huge change from the decline of one listing last year and annual increases dating back to the merger of the TSE and the Osaka Stock Exchange in 2013.
The exchange has seen a wave of management-buyouts and M&A-related delistings this year. A capital efficiency improvement campaign waged by the bourse has further depressed numbers, discouraging smaller firms from going public in the first place.
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