Data from Nikkei Asia indicates that the number of companies leaving the Tokyo Stock Exchange is poised to set a new record for the third straight year. This trend is driven by firms opting for privatization in partnership with investment funds, as well as those failing to comply with stricter listing requirements.

As of last Friday, September 4, a total of 128 listed companies have either been delisted from the Tokyo Stock Exchange or confirmed their delisting during 2026. This figure has already surpassed the 125 delistings recorded for the entirety of 2025, and it appears likely to climb further, given that 29 currently listed firms are on a regulatory watchlist and face potential removal.

Among the companies undergoing privatization, approximately one-fifth, or 28 firms, have enlisted the support of investment funds. Meanwhile, some delistings stem from a market restructuring implemented by the exchange four years ago. In April 2022, the Tokyo Stock Exchange consolidated its four market segments into three and revised the market capitalization criteria for listing eligibility. As the transition period concludes, ten companies that do not meet the updated standards are slated for delisting on October 1, with additional firms expected to follow suit in 2027.

As of the end of August this year, the total number of listed companies on the Tokyo Stock Exchange stood at 3,705, excluding the Tokyo Pro Market tailored for professional investors. This marks a decline from the 3,782 companies recorded at the end of 2025 and represents a 4% drop from the peak seen at the end of 2023, reaching the lowest level in seven years.

In the first eight months of this year, the exchange has witnessed only 22 initial public offerings, a decrease compared to the same period last year. By contrast, the Hong Kong Stock Exchange counted 2,761 listed companies as of August 31, 2026, up from 2,686 in 2025, with 31 companies delisting over the first eight months of 2026.

*Any omissions are unintentional and we welcome corrections. This article is for informational purposes only and does not constitute investment advice. Investors should act at their own risk.