TPEX and Industrial Sub-Indices

The indices compiled by the Taipei Exchange include the Taipei Exchange Capitalization Weighted Stock Index (TPEX), the Electronics Sub-Index, and other Industrial Sub-Indices.

This series of indices is calculated by using the common stocks currently traded on the TPEx as the constituents and the number of issued shares as the price weights. Any changes of the above shall be adjusted to the base value to maintain the continuity of the indices. The base value is not adjusted for cash dividends, except for Total Return Index. Therefore, a fall will be observed in the market value and index on ex-dividend dates for TPEx listed stocks.

1. Base and Constituents:

(1) TPEX:

1.Base: October 30, 1995 and the base index is set at 100 points.

2.Constituents: Common stocks of TPEx listed companies that are not managed stocks or Emerging Stocks and meet the listing time requirement.

(2) Electronics Sub-Index:

1.Base: May 31, 1996 and the base index is set at 100 points.

2.Constituents: Common stocks of TPEx listed companies that meet the listing time requirement and belong to any one of the sectors: semiconductor, computer and peripheral equipment, optoelectronic, communications and internet, electronic parts and components, electronic products distribution, information service, and electronics.

(3) Sector indices:

There are 17 sector indexes , namely textiles, electric machinery, chemical, biotechnology and medical care, iron and steel, building materials and construction, shipping and transportation, tourism, semiconductors, computer and peripheral equipment, optoelectronics, communications and internet, electronic parts/components, electronic products distribution, information service, games, and cultural and creative industries.

1.Base: The base of the iron and steel index is October 30, 1997. The base of the textiles, electric machinery, chemical, building materials and construction, and shipping and transportation indices is May 29, 1998. The base of the tourism index is May 31, 2001. The base of the biotechnology and medical care, semiconductors, computer and peripheral equipment, optoelectronics, communications and internet, electronic parts/components, electronic products distribution, and information service indices is June 29, 2007. The base of the games index is December 30, 2011. The base of the cultural and creative industries index is January 3, 2014. The base index is set at 100 points for the indices above.

2.Constituents: The TPEx follows the industry definitions under the Taipei Exchange Directions for Classifying and Adjusting the Industry Categories of TPEx Listed Companies. The constituents in the Industrial Sub-Indices are common stocks of TPEx listed companies that meet the listing time requirement and belong to respective sectors. The constituents in the online games index are common stocks of TPEx listed companies that meet the listing time requirement and design/develop or publish online games.

2. Total return index:

The base value of the total return index will be adjusted on ex-dividend dates when listed companies distribute cash dividends. As a result the index will not fall due to ex-dividend and will reflect the returns including cash dividends. The TPEx has compiled the total return index for the TPEX since January 2nd, 2006. The base for the index is December 30th, 2005 and the base value is 133.34 points (identical to the TPEX closing index on the same day). After that, TPEX introduced the total return indices for the Industrial Sub-Indices on October 31st, 2016. The base for those return indices is December 31st, 2015 and the base values are identical to the respective closing price indices on that day. Total return indices are published at the end of each trading day to provide more diversified benchmarks for market information users.

3. Past Industrial Sub-Indices:

The TPEx made adjustments to the sector indices in response to sector reclassification for listed companies. Starting on July 2, 2007, the financial and insurance sector and the securities sector have been merged into the financial sector. The TPEx has stopped calculating the "financial and insurance index", the "securities index", and the "weighted index excluding financial stock issues". In addition, since most of the constituents of electrical equipment and cables index have transferred listing to TWSE, TPEx has stopped compiling this index on that day.

4.Index calculation and disclosure frequency:

This series of indices are calculated at the latest trading prices of the constituents and the real time indices are announced once every 5 seconds between 9:00 and 13:30 on every trading day, and the closing indices are only calculated once after closing. Total return index is only calculated once at the end of each trading day.