TOKYO (Kyodo) -- The number of stocks constituting a revamped Topix index will be eventually cut by around 40 percent to below 1,000 from around 1,600, as part of a review of the major benchmark on the Tokyo Stock Exchange aimed at drawing more investment, the operator said Wednesday.

The weighting of 683 stocks selected from the current constituent issues will be reduced on a quarterly basis from Oct. 30, while 35 new stocks, including McDonald's Holdings Co. (Japan) and Toei Animation Co., will be added to the index on the same day.

The stocks that fail to meet the criteria in a reassessment in October 2027 will be fully removed from the index by the end of July 2028, according to the operating company, Japan Exchange Group Inc.

The composition of stocks will be determined by taking into account factors such as market capitalization and trading volume.

The Topix index originally comprised all stocks listed on the First Section of the Tokyo Stock Exchange. Following a market reorganization in 2022, those stocks were reclassified mainly into the newly created Prime Market.

The constituent stocks will be reviewed and replaced annually from October 2028.