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TWSE TAIEX Series Compiled by TWSE
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Home > Products & Services > Indices&Licensing > TWSE TAIEX Series Compiled by TWSE  
 
 TWSE TAIEX Series Compiled by TWSE
 
．Guidelines for Computation of the TAIEX
 
1. The Taiwan Stock Exchange Capitalization Weighted Stock Index ("TAIEX") computed by Taiwan Stock Exchange Co., Ltd. ("TWSE") takes as its component sample all common stocks listed for trading, as set forth below:
(1) 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; provided, stocks of listed companies converted into financial holding companies and listed companies transferred from OTC market are included in the sample from the day of listing.
(2) Stocks suspended from trading are included in the sample from the first trading day of the next month following one full calendar month from reinstatement of normal trading; provided, 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.
(3) Stocks changed to full-delivery trading are excluded from the sample, and will be included again on the date restoring regular trading status.
2. The TAIEX weighted index computed by TWSE is calculated by the following formula:
Index = Current aggregate market value / Base value * 100
The current aggregate market value is the aggregate of the market values obtained by multiplying the price of each component stock by the number of issued shares; however, stock of newly listed companies included in calculation of the index may be accounted for on the basis of the number of shares currently listed.
The base value at the time of commencement of calculation of the index base period is the current aggregate market value at that time.
3. Upon occurrence of any of the below-listed events, the base value of the TAIEX computed by TWSE shall be adjusted to maintain the continuity of the TAIEX:
(1) Addition or deletion of a component stock - amendment date.
(2) Subscription of common shares for cash capital increase - ex-rights date.
(3) Distribution of common shares as bonus to employees or certificates of entitlement to new shares - listing date.
(4) Distribution of common shares as stock dividends on preferred stock - ex-rights date.
(5) Holding by a listed company of treasury stock for which capital cancellation has not been carried out - ex-rights date.
(6) Share cancellation based on the law - ex-rights date or the third trading day of the next month following public announcement on capital decrease, whichever comes first.
(7) Failed offering for cash capital increase - at reversion to the original number of issued shares on the third trading day of the next month following receipt of notification.
(8) Listing of certificates of entitlement to shares or new shares following company merger or consolidation - listing date.
(9) Listing of common shares issued in replacement of certificates of entitlement to convertible bonds - listing date.
(10) Common shares converted directly from convertible bonds or issued through exercise of securities with subscription right - ex-rights date or the third trading day of the next month following the public announcement of capitalization amendment registration.
(11) Cash capital increase shares or certificates of payment for which shareholders have waived subscription rights and public underwriting has been adopted - listing date.
(12) New shares issued for global depositary receipts - listing date.
(13) Common shares converted from convertible preferred shares - listing date.
(14) Other non-trading factors affecting aggregate market value.
4. The formula for adjustment of the base value is as follows:
New base value = old base value * (aggregate market value after the change / aggregate market value before the change)
Aggregate market value after the change = the aggregate market value before the change + the sum total of all changes in market value.
Changes in market value are calculated as follows:
  3.(1) herein:
  Change in market value = closing price on the final trading day before the change * shares issued by the listed company

3.(2) herein:
  Change in market value = cash capital increase subscription price * number of cash capital increase shares

3.(3) herein:
  Change in market value = (closing price before the listing date of distribution of common shares as bonus to employees or certificates of entitlement to new shares) * number of shares resulting from bonus to employees

3.(4) herein:
  Change in market value = ex-rights reference price of the common shares * total number of common shares issued as stock dividends on preferred shares
•Ex-rights reference price of the common shares = ( closing price before the ex-rights date + cash capital increase subscription price * cash capital increase share distribution rate ) / ( 1 + shareholder stock dividend rate + cash capital increase share distribution rate )
•shareholder stock dividend rate = number of capital increase shares distributed as dividends to shareholders / number of issued shares before the ex-rights date
•Cash capital increase share distribution rate = number of shares issued for the cash capital increase / number of issued shares before the ex-rights date

3.(5) herein:
  Change in market value = aggregate market value after the ex-rights date - aggregate market value before the ex-rights date
•aggregate market value before the ex-rights date = ( closing price before the ex-rights date - cash dividend per share ) * number of issued shares before the ex-rights date
•aggregate market value after the ex-rights date = ( closing price before the ex-rights date - cash dividend per share ) / ( 1 + shareholder stock dividend rate ) * number of issued shares after the ex-rights date

3.(6), 3.(7), 3.(8), 3.(9), 3.(10), 3.(11), 3.(12), 3.(13) and 3.(14) herein:
  Change in market value = closing price of the common stock on the final trading day before the change * change in the number of common shares
5. The base value is not adjusted for cash dividend, except for Total Return Index.
The formula for adjustment of the base value of Total Return Index is as follow:
New base value = old base value * [ ( aggregate market value after the change by Article 4 - aggregate cash dividend ) / aggregate market value before the change by Article 4 ]
6. The industrial sub-indices are all computed in accordance with these Guidelines, except that their component stocks are chosen from same industry.
7. These Key Points shall take effect upon being publicly announced. Subsequent amendment hereto shall be effected in the same manner.

NOTE:The English version is for reference purpose only, and the Chinese version shall prevail.

 
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