"The 'Japanese version of the S&P 500' is here! It encompasses the 'Japanese special estimate' in one fell swoop, with a market value accounting for a significant portion of the Japanese stock market."

In addition to the Nikkei 225 and TOPIX indices, the Japanese market has another stock index.

On Monday, the Japan Exchange Group announced the launch of the JPX Prime 150 Index, aiming to make it easier for investors to identify the value of companies in the stock market. It is said that this index is a new stock price index composed of 150 major Japanese companies with high capital efficiency.

The constituents of the JPX Prime 150 Index are selected from the 150 stocks listed on the Tokyo Stock Exchange, including giants such as Sony, Hitachi, Nintendo, as well as trading giants Marubeni, Itochu, and Mitsui, which are blessed by the "Stock God" Buffett, but excluding car manufacturers such as Toyota and Nissan.

According to the official website of the Japan Exchange, the JPX Prime 150 Index aims to showcase leading Japanese companies that are expected to create value and make the index and its constituents a target for long-term investment by domestic and foreign institutions and individual investors, thereby helping to promote value creation management and enhance the attractiveness of the Japanese stock market. The index is based on 1000 points and is weighted by the free float market capitalization of individual stocks.

Takahiro Miura, Director of Index Business Market Innovation and Research at the Japan Exchange Group, told CNBC:

"Increasing the value of listed companies is crucial for market expansion and revitalization."

Miura pointed out that the market value of the constituents of the JPX Prime 150 Index accounts for about half of the Japanese stock market, and their quality is comparable to that of the S&P 500 index. That is, the price-to-book ratio, return on equity, and earnings per share growth rate of these companies are at the same level as the constituents of the S&P 500, and he also mentioned that the market value of each constituent stock is at least 1 trillion yen.

Miura added that JPX Prime 150 Index futures and related ETF products will be launched before the end of the year.

The JPX Prime 150 Index closed at 1067.96 points today.

Since the beginning of this year, the Japan Exchange Group has been promoting companies to improve capital efficiency. It hopes to ensure sustainable growth and increase corporate value in the medium to long term by focusing on the capital cost and profitability based on the balance sheet, rather than just the sales and profit levels on the income statement.

This year, the Japanese stock market has become one of the best-performing stock markets globally, with the Nikkei 225 rising by over 30% and the TOPIX index reaching its highest level in over 30 years, with a gain of 24%.