TSE Mandates Simultaneous Japanese-English Disclosure for Prime Market Companies

The Tokyo Stock Exchange (TSE) has announced that, effective April 2025, all 1,600 companies listed on its top Prime Market will be required to simultaneously release financial results and other critical data in both Japanese and English. This move aims to enhance transparency and attract overseas investments.

The TSE believes that dual-language information disclosure will make Japanese companies more accessible to foreign investors. According to Hiromi Yamaji, CEO of Japan Exchange Group Inc., the TSE's parent company, this will lead to increased capital inflows from international sources.

While the TSE mandates simultaneous disclosure in both languages, it allows companies to translate only outlines and specific sections of information into English. In cases where simultaneous disclosure of all data could delay the release of the Japanese version, companies may prioritize the Japanese release, followed by the English translation.

As of December 2023, 90% of Prime Market companies disclosed their financial results in English. However, only half of these companies released Japanese and English reports concurrently. The TSE has received feedback from non-Japanese investors expressing concern about the time lag between the releases, which they consider a significant impediment.