⚡ Tokyo Exchange Asks 270 Companies to Cut Entry Costs for Retail Investors

The Tokyo Stock Exchange is pressing 270 listed companies to split their shares and reduce minimum investment costs, which currently exceed 500,000 yen (roughly $3,050) per lot. TSE President Ryusuke Yokoyama sent a formal letter Tuesday requesting action as retail investors demand entry points closer to 100,000 yen. The exchange is launching a working group in October to develop specific measures promoting smaller investments.

Momentum is building. Of 276 companies that completed splits in the past year, 70 percent targeted the 100,000 yen range, dropping the proportion priced above 500,000 yen from 45 percent to just 2 percent. However, 69 firms still require over 1 million yen per lot, including Kioxia Holdings at 8.97 million yen. Tokyo Electron and Organo plan five-for-one splits on October 1. The push comes as Japan’s retail investor base expands rapidly, with Rakuten Securities surpassing 14 million accounts in April.

FXnCO Insight

Traders should monitor Japanese equities for increased retail volatility and liquidity as share splits accelerate accessibility for smaller investors throughout Q4.

Source: Finance Magnates