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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 constituents of the Taiwan Stock Exchange Capitalization Weighted Stock Index ("TAIEX") compiled by Taiwan Stock Exchange Co., Ltd. ("TWSE") are taken from 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 or investment holding companies, and listed companies transferred from the 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 compiled by TWSE is calculated by the following formula:
Index = Aggregate market value / Base value of the current day * 100
The aggregate market value is the summation of the market values obtained by multiplying the traded price of each constituent by the issued shares of the current day. If there is no traded price on the current day, the opening auction reference price of the current day may be used for calculation. However, stock of newly listed companies included in calculation of the index may be accounted for on the basis of the listed shares of the current date.
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 constituent - effective date.
(2) Subscription of common shares for cash capital increase - ex-right 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-right date.
(5) Holding by a listed company of treasury stock for which capital cancellation has not been carried out - ex-right date.
(6) Share cancellation based on the law - ex-right 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-right 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:
Base value of the current day = Base value of the previous day * (Adjusted aggregate market value after the close of the previous day / the closing aggregate market value of the previous day)
Adjusted aggregate market value after the close of the previous day = the closing aggregate market value of the previous day + the sum of various adjustments in market value.
Adjustments in market value are calculated as follows:
  3.(1) herein:
  Adjustment in market value = closing price of the previous day * shares issued

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

3.(3) herein:
  Adjustment in market value = (closing price of the common shares 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:
  Adjustment in market value = ex-right reference price of the common shares * total number of common shares issued as stock dividends on preferred shares
•Ex-right reference price of the common shares = (closing price before the ex-right 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-right date
•Cash capital increase share distribution rate = number of shares issued for the cash capital increase / number of issued shares before the ex-right date

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

3.(6), 3.(7), 3.(8), 3.(9), 3.(10), 3.(11), 3.(12), 3.(13) and 3.(14) herein:
  Adjustment in market value = closing price of the previous day * change in the number of shares
The opening auction reference price of the current day may be used for the calculation of the various adjustments in market value according to Article 4 after the close of the previous day, if the closing price is not available
5. The base value is not adjusted for cash dividends, except for Total Return Index.
The formula for adjustment of the base value of Total Return Index is as follow:
Base value of the current day = base value of the previous day * [ (adjusted aggregate market value after the close of the previous day - aggregate cash dividends distributed on the current day) / the closing aggregate market value of the previous day ]
6. The industrial sub-indices are all computed in accordance with these Guidelines, except that their constituents 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 only, and the Chinese version shall prevail.

 
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