| Index Name |
JPX-Nikkei Mid and Small Cap Index
Abbrev.: JPX-Nikkei Mid Small |
| Index Provider |
JPX Market Innovation & Research, Inc., and Nikkei Inc. |
| No. of Constituents |
200 issues |
| All the eligible constituents |
Common stocks whose main market is the TSE Prime Market, Standard Market, Growth Market |
Constituent Selection/
Review Method |
Constituent selection and review will be conducted as follows.
[Selection Criteria]
Constituents are selected according to the following process and criteria.
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Screening
① Screening by Eligibility Criteria
Issues are excluded from selection if they fall under any of the following criteria.
・Listed for under 3 years (excluding technical listings)
・Liabilities in excess of assets during any of the past 3 fiscal years
・Operating deficit in all of the past 3 fiscal years
・Overall deficit in all of the past 3 fiscal years
・Designation as Security to be Delisted, etc.
② Removal of large cap issues
Issues constituting the top 20% of market capitalization on the base date shall be removed from ①above.
Notwithstanding the foregoing, those in the top 18% that are issues eligible as constituents of JPX-Nikkei Mid and Small Cap Index on the base date shall be removed.
③Screening by Market Liquidity Indicator
The issue under the 10 billion yen of the market capitalization on the base date and under 15 billion yen of trading value in the one year since the base date shall be removed from ②above.
If the number of eligible stocks is fewer than 500 after above procedure, the market capitalization and trading value criteria are lowered by one billion respectively until the number of eligible stock is over 500.
-
Scoring based on Quantitative Indicators
Each ranking score shall be given to the issues in (1) above according to the following items and overall score is calculated.
・3-year average ROE: 70%
・3-year cumulative operating profit: 30%
-
Scoring based on Qualitative Factors
Following the scoring in (2), issues will be further scored based on the following matters.
The score is determined so that at most around 10 constituents are different from those chosen with only quantitative score above (2).
・Appointment of independent directors(Out of the total number of directors, a majority are independent directors.) and female board members/executive officers 3-year average ROE until the number of constituents reaches 200.
・Adoption or Scheduled Adoption of IFRS
・Disclosure of English Earnings Information and/or Corporate Governance Report via TDnet (Company Announcements Distribution Service in English)
-
Determination of Constituents
Following scoring in (3), the 200 issues will be selected as below procedures.
i. Constituents selected in the previous year will be selected as long as their scores are ranked within the top 250. If the number of selected stocks falls below 200 as a result of the selection procedures indicated above, 200 issues will be selected in descending order of high scores as constituents.
ii. If 200 issues are not selected in the preceding paragraph i., the top ranking issues according to the rankings in (3) above that meet the two conditions indicated below shall be selected until the number of constituents reaches 200.
- Either 3-year average ROE or latest ROE surpasses the median ranking
in (1).③ above
- Ranking is at or within the top ranking 200 issues in (3) above
iii. If the number of selected issues falls below 200 even after selection according to the preceding paragraph ii., then the top-ranking 200 issues in (3) that were not selected shall be selected according to the rankings of 3-year average ROE until the number of constituents reaches 200.
[Periodic Review]
Results of the constituent review become effective on the last business day of August each year with the last business day of June as the base date for selection.
Even though the number of constituents in JPX-Nikkei Mid Small may decrease between periodic reviews due to the removal of constituents by means other than the periodic review, no supplementary inclusions are made to meet the intended number of constituents (inclusions to meet the intended number of constituents are only made during the periodic review in August).
|
| Calculation Method |
Free-float adjusted market capitalization-weighted (with 1.5% cap) |
| Start of Calculation |
March. 13, 2017
Real-time dissemination (per sec) of the index via Tokyo Stock Exchange’s Market Information System
|
| Base Date/Base Point |
Aug. 31, 2016 / 10,000 points |
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