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Article 7
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The expression "an irregular price-to-earnings rate, price-to-book ratio, and unusually high intraday turnover, combined with any one of the three circumstances: a relatively high price-to-book ratio for stocks of the given industry, an intraday value for confirmed purchases or sales of the given security at any single securities firm that accounts for an unusually high proportion of the total intraday value of confirmed trades in the given security, or an intraday value for confirmed purchases or sales of the given security by any single investor that accounts for an unusually high proportion of the total intraday value of confirmed trades in the given security" as used in Article 4, paragraph 1, subparagraph 6 of the Directions shall mean that the particular security meets each of the following conditions on a given day:
- The security has a negative price-to-earnings ratio or is trading at 60 times earnings or higher, while exceeding the weighted average value for the price-to-earnings ratios of all units issued in the market as a whole on the given day by two times or more.
- The security has a price-to-book ratio of 6.0 or more, while exceeding the weighted average value for the price-to-book ratios of all units issued in the market as a whole on the given day by a factor of two or more.
- The intraday turnover rate is 5 percent or higher, with a volume of trade of 3,000 trading units or more.
- The security meets any one of the following three conditions:
- The price-to-book ratio is greater than the average value of price-to-book ratios of all same-sector securities, weighted by units issued as of the given day, by four times or more.
- The monetary value of confirmed purchases or sales of the given security (including orders accepted and trading done on the firm's own accounts) at a securities firm on the given day account for 10 percent or more (if the securities firm has branch offices, an additional 1 percent may be added for each branch office; the combined total may not exceed 25 percent) of the total monetary value of confirmed trades in the given security, while also reaching NT$100 million or more.
- The monetary value of confirmed purchases or sales of the given security by any single investor on the given day accounts for 10 percent or more of the total monetary value of confirmed trades in the given security on the given day, while also reaching NT$100 million or more.
Exceptions to the preceding paragraph are as follows:
- The transaction prices of newly-listed ordinary shares during the period in which no price fluctuation limit is imposed shall not be included in calculation of the standards under the preceding paragraph.
- The standards under the preceding paragraph shall not apply to securities other than ordinary shares.
- For trades of a security made under the TWSE Regulations Governing Bulk-lot Trades, the transaction amount shall be deducted when calculating the standards according to subparagraph 3 and items 2 and 3 of subparagraph 4 of the preceding paragraph.
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