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Directions for the Preparation of the Taiwan Stock Exchange Corporation Capitalization-Weighted Stock Index (TAIEX)(2015.09.14) |
| Date： |
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1
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The Taiwan Stock Exchange Capitalization-Weighted Stock Index (hereinafter referred to as "TAIEX") compiled by the Taiwan Stock Exchange Corporation (hereinafter referred to as "TWSE") takes as its component sample all common stocks listed, as set forth below:
- Stocks of newly listed companies are included in the sample from the first trading day of the next month following one full calendar month from listing; however, stocks of listed companies converted into financial holding companies or investment holding companies, and listed companies transferred from the over-the-counter market, are included in the sample from the day of listing.
- Stocks suspended from trading are excluded from the sample until the first trading day of the next month following one full calendar month from reinstatement of regular trading; however, stocks suspended from trading because of issuance of replacement shares due to capital reduction resulted from a corporate split are included in the sample from the day of resuming trading of the new shares.
- Stocks whose trading methods are changed are excluded from the sample until the day of reinstatement of regular trading.
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2
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The TAIEX compiled by the TWSE is calculated by the following formula:
Index = Aggregate market value / Base value of the current day x 100
The aggregate market value is the aggregate of the market values obtained by multiplying the traded price of each constituent stock by the number of issued shares of the current day.If there is no traded price on the current day, the auction reference price at market open for such day may be used for calculation. However, stocks of newly listed companies included in calculation of the index may be accounted for on the basis of the number of listed shares of the current date.
The base value at the time of commencement of calculation of the index base period is the then current aggregate market value.
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3
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Upon occurrence of any of the events listed below to the compilation of the TAIEX by the TWSE, the base value shall be adjusted to maintain the continuity of the TAIEX:
- Effective date of addition or deletion of a component stock;
- Ex-rights date of subscription of common shares for cash capital increase;
- Listing date of distribution of common shares as bonus to employees or certificates of entitlement to new shares;
- Ex-rights date of distribution of common shares as stock dividends on preferred stock;
- Ex-rights date of holding by a listed company of treasury stock for which capital cancellation has not been carried out;
- Ex-rights date or the third trading day of the next month following public announcement by the TWSE of capital decrease, whichever comes first, for share cancellation in accordance with the law;
- Reversing to the original number of issued shares on the third trading day of the next month following receipt of notification of failed offering for cash capital increase;
- Listing date of certificates of entitlement to new shares or issuance of new shares following company merger or consolidation;
- Listing date of common shares issued in replacement of certificates of entitlement to convertible bonds;
- Ex-rights date or the third trading day of the next month following the public announcement of capitalization amendment registration in the event of common shares converted directly from convertible bonds issued by the listed company or common shares issued through exercise of securities with subscription right;
- Listing date of cash capital increase shares or certificates of payment for which shareholders have waived subscription rights and public underwriting has been adopted;
- Listing date of new shares issued for overseas depositary receipts;
- Listing date of common shares converted from convertible preferred shares;
- Other non-trading factors affecting aggregate market value.
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4
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The formula for adjustment of the base value is as follows:
Base value of the current day = Base value of the previous day x (Adjusted aggregate market value after the close of the previous day / Closing aggregate market value of the previous day).
Adjusted aggregate market value after the close of the previous day = Closing aggregate market value of the previous day + Sum total of all adjustments in market value.
Adjustments in market value are calculated as follows:
Paragraph 1, Article 3 of these Directions:
Adjusted market value = Closing price of the previous day x Nnumber of shares issued
Paragraph 2, Article 3 of these Directions:
Adjusted market value = Subscription price of cash capital increase x Number of cash capital increase shares
Paragraph 3, Article 3 of these Directions:
Adjusted market value = Closing price of the commons shares of the day before the listing of capital increase shares or certificates of entitlement to new shares x Number of capital increase shares resulting from bonus to employees
Paragraph 4, Article 3 of these Directions:
Adjusted market value = Ex-rights reference price of common shares x Total number of common shares issued as stock dividends on preferred shares
Ex-rights reference price of common stocks = (Closing price before the ex-rights date + Cash capital increase subscription price x Cash capital increase share distribution rate) ÷(1 + Gratuitous stock distribution rate + Cash capital increase share distribution rate)
Gratuitous stock distribution rate = Number of capital increase shares distributed as dividends to shareholders on gratuitous basis ÷ Number of shares issued before the ex-rights date
Cash capital increase share distribution rate = Number of shares issued for cash capital increase / number of shares issued before the ex-rights date
Paragraph 5, Article 3 of these Directions:
Adjusted market value = Market value after the ex-rights date -Market value before the ex-rights date
Market value before the ex-rights date = (Closing price before the ex-rights date - Cash dividends per share) x Number of shares issued before the ex-rights date
Market value after the ex-rights date = (Closing price before the ex-rights date - Cash dividends per share) / (1 + Gratuitous stock distribution rate) x Number of shares issued after the ex-rights date
Paragraphs 6, 7, 8, 9, 10, 11, 12, 13, and 14, Article 3 of these Directions:
Adjusted market value = Closing price of the previous day x Change in the number of shares
If the closing price is not available, the opening auction price of the current day may be used for the calculation of the various adjusted market values in accordance with Article 4 after the closing of the previous day.
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5
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The base value is not adjusted in the event of dividend exclusion of a listed company, except for the Total Return Index.
The formula for adjustment of the base value of the Total Return Index is as follows:
Base value of the current day = Base value of the previous day x [(Adjusted aggregate market value after the close of the previous day - Aggregate cash dividends distributed on the current day) / Closing aggregate market value of the previous day]
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All industrial sub-indices shall be computed in accordance with these Directions, with the exception of those whose component samples are classified as required by the specific industry.
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These Directions shall take effect from the date of announcement. Subsequent amendments hereto shall be effected in the same manner.
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