Japan's stock exchange chief has indicated that recent reforms are reducing 'aimless' listings, signaling a shift in Japanese corporate culture towards a profit-focused approach and the end of cross-shareholdings. This change could make Japanese small caps more attractive to investors. Meanwhile, Japan's M&A market is thriving despite a global downturn in deals. Additionally, Japan has found a 'stealth' cure for its 'zombie' businesses by allowing them to fail. Many small and medium-sized firms, which have long relied on state support and nearly free funding, are now facing a shake-up as pandemic-era support dwindles and interest rates rise. For much of its 72 years, Hitoshi Fujita's company was just another mom-and-pop business grinding out metal parts before it expanded.