The speed at which Japanese companies are exiting the Tokyo Stock Exchange has reached a historical high.

According to Gate News bot, Bloomberg reports that Japanese companies are exiting the Tokyo Stock Exchange at the fastest rate in over a decade, reflecting the increased pressure they face to better utilize capital, resulting in a surge in acquisitions and management buyouts.

According to exchange data, in the first half of this year, the number of companies delisted or announcing plans to delist from the Tokyo Stock Exchange has reached 59, an increase from 51 in the same period last year, setting a record for the same period. If companies continue to delist at this pace, this number will exceed last year's annual record of 94 by 2025.

This trend reflects the Tokyo Stock Exchange's commitment to enhancing the attractiveness of the Japanese market to foreign investors by ensuring that listed companies provide high shareholder returns, while companies that fail to meet this target face the threat of delisting. The Tokyo Stock Exchange urges companies to pursue goals that include raising valuations and reducing excessively close ties with other companies through cross-shareholdings.

These reforms have made the Japanese stock market one of the best-performing markets globally in recent years, while also encouraging activist shareholders to demand more changes from company management. For investors, the rise of activism has prompted calls for measures such as stock buybacks to enhance returns, while merger and acquisition activity has also increased significantly.

Hiroshi Matsumoto, Senior Client Portfolio Manager at Baida Japan, stated: "Due to the active capital markets, the decrease in the number of listed companies is a welcome development."

Japan is following in the footsteps of overseas markets such as the United States and the United Kingdom. Over the past 20 years, due to stricter listing rules and the growth of private market financing, an increasing number of companies have achieved privatization.