Japan has launched a new stock index on Monday, making it easier for investors to identify corporate value in the equity markets, in a move to strengthen corporate governance reforms in the world’s third-largest economy.

The new JPX Prime 150 Index is a curated list of the 150 constituent listings on the Tokyo Exchange, which includes the likes of tech giants like Sony Group, Hitachi, Nintendo and Warren Buffet-backed trading houses Marubeni, Itochu and Mitsui & Co. The index excludes automakers such as Toyota Motor and Nissan Motor.

The index is designed to reflect the performance of companies that have high profitability, growth potential, shareholder returns and governance standards. The index also aims to attract more foreign and passive investors to the Japanese market, which has been lagging behind its global peers in terms of valuation and returns.

The launch of the new index is part of Japan’s efforts to improve its corporate governance and culture, which have been criticized for being too conservative, opaque and insular. The government has introduced various reforms in recent years, such as requiring listed companies to have at least two independent directors, encouraging more female and foreign board members, and promoting better disclosure and engagement with shareholders.

The JPX Prime 150 Index is expected to compete with other popular benchmarks in Japan, such as the Nikkei 225 Index and the TOPIX Index. The index will be reviewed annually and rebalanced quarterly. The index will also be used as the basis for exchange-traded funds (ETFs) and other financial products.