JPX-Nikkei400 / JPX-Nikkei Mid Small
JPX-Nikkei Mid and Small Cap Index
Aim of the Index
Japanese stock indices for mid and small cap equities are mostly based on indicators of liquidity, such as market capitalization and trading value, and it is not common to use capital efficiency and financial status as indicators for index constituent selection.
The new index applies the concept of the JPX-Nikkei Index 400, which is an index comprised of highly attractive listed companies, to mid and small cap equities by selecting companies that focus on capital efficiency and investor-oriented management, and aim to foster greater awareness of such issues among corporate executives. The index will also aim to meet the needs of investors looking to invest in such companies.
When selecting issues, we will also consider the liquidity of each issue in the market to facilitate the actual use of the new index for asset management.
Main Points of Index
| Index Name |
JPX-Nikkei Mid and Small Cap Index
Abbrev.: JPX-Nikkei Mid Small |
| Index Provider |
Tokyo Stock Exchange, Inc. and Nikkei Inc. |
| No. of Constituents |
200 issues |
| All the eligible constituents |
Common stocks whose main market is the TSE 1st Section, 2nd Section, Mothers, or JASDAQ 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.
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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%
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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 Outside Directors (at least one-third or a minimum of three. If one-third of the total number of directors is less than two, at least two.)
・Adoption or Scheduled Adoption of IFRS
・Disclosure of English Earnings Information and/or Corporate Governance Report via TDnet (Company Announcements Distribution Service in English)
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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 in the preceding paragraph ii., then the non-selected top ranking 200 issues according to the rankings in (3) above shall be selected 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).
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| 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 |
Constituents List with Weight
| Constituents List with Weight (As of Feb 28, 2020) |
 |
The monthly component weight data (as of the end of the month) for JPX-Nikkei Mid and Small Cap Index will be updated on or after 4:20 pm (Japan time) on the last business day of the following month.
Ex) Monthly component weight data as of the end of October will be updated on or after 4:20 pm on the last business day of November.
Other Referential Data
| Factsheet |
 |
| Data regarding Periodic Review |
|
Calculation Method
| JPX-Nikkei Mid and Small Cap Index Guidebook （December 18, 2019） |
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News
| Mar.27,2020 |
Change in Minor Adjustment Date Related to Ex-dividend for “JPX-Nikkei Index 400” and “JPX-Nikkei Mid and Small Cap Index” |
| Mar.09,2020 |
Deletion from the JPX-Nikkei Mid Small |
| Dec.18,2019 |
Revision of the Guidebooks for “JPX-Nikkei Index 400” and “JPX-Nikkei Mid and Small Cap Index” |
| Aug.09,2019 |
Deletion from the JPX-Nikkei Mid Small |
| Aug.07,2019 |
Periodic Review of “JPX-Nikkei Index 400” and “JPX-Nikkei Mid and Small Cap Index” |
| Aug.07,2019 |
Corrections of Guidebook for JPX-Nikkei Index 400 and JPX-Nikkei Mid and Small Cap Index |
| Mar.07,2019 |
Deletion from the JPX-Nikkei 400 and JPX-Nikkei Mid Small |
| Feb.05,2019 |
Change to the JPX-Nikkei Mid Small |
| Dec.17,2018 |
Calculation of JPX-Nikkei Index 400 and JPX-Nikkei Mid and Small Cap Index in Relation to Shares of Takeda Pharmaceutical Company Limited and LIFULL Co., Ltd. |
| Dec.17,2018 |
Revision of Guidebook for JPX-Nikkei Index 400 and JPX-Nikkei Mid and Small Cap Index |
| Sep.05,2018 |
Change to the JPX-Nikkei Mid Small” |
| Aug.15,2018 |
Deletion from the JPX-Nikkei Mid Small” |
| Aug.07,2018 |
Periodic Review of “JPX-Nikkei Index 400” and “JPX-Nikkei Mid and Small Cap Index” |
| Mar.05,2018 |
Revision of the Guidebooks for “Change to the JPX-Nikkei Mid Small |
| Dec.27,2017 |
Revision of the Guidebooks for “JPX-Nikkei Index 400” and “JPX-Nikkei Mid and Small Cap Index” |
| Dec.22,2017 |
Deletion from the JPX-Nikkei Mid Small |
| Aug.22,2017 |
Deletion from the JPX-Nikkei Mid Small |
| Aug.07,2017 |
Periodic Review of “JPX-Nikkei Index 400” and “JPX-Nikkei Mid and Small Cap Index” |
| Jul.11,2017 |
Deletion from the JPX-Nikkei 400 and JPX-Nikkei Mid Small |
| Mar.13,2017 |
Launch of JPX-Nikkei Mid and Small Cap Index |
| Mar.08,2017 |
The index value of JPX-Nikkei Mid and Small Cap Index |
| Dec.22, 2016 |
Deletion from the JPX-Nikkei Mid and Small Cap Index |
| Dec.14, 2016 |
Start of Calculation and Publication of New Index “JPX-Nikkei Mid and Small Cap Index” |
| Oct.27, 2016 |
Calculation of New Index - JPX-Nikkei Mid and Small Cap Index (tentative) |
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