Taiwan stocks fell sharply, and the number of TSMC shareholders increased greatly! Foreign investors frequently issued bullish reports, and investment trust continued to buy, but the stock price was still “accumulated” and weak. Why? Can TSMC go low now? Before that, you have to know the mystery of the number of TSMC shareholders.
【arts/ Wang Wenliang】
The market fell from 18,619 points to 15,616 points, a sharp drop of more than 3,000 points. The epidemic situation in Taiwan is severe, and the stock market crash should not be ignored. Investors who show symptoms of trapping are like the rapid spread of the epidemic, especially TSMC (2330) has the largest number of shareholders. This wave of TSMC It fell from 688 yuan to 505 yuan, and finally rose back above 520 yuan on the eve of 520. It is clear that foreign investors have frequently issued optimistic reports. Recently, Goldman Sachs raised the target price to 912 yuan, and Morgan Stanley echoed the price of thousands of yuan in three years. Why is the stock price still “accumulating” weak? In addition to the shareholders counted by CHIP, the slump has shrunk the wealth of many investors, and don’t forget that there are millions of “quasi-shareholders”.
Those who buy TSMC directly in the market with fractional shares, existing shares, and financing are shareholders, and those who hold ETFs containing TSMC are “class shareholders”, and the profit and loss of the account fluctuates with TSMC’s stock price.
The number of TSMC shareholders has soared
In the past two years, the investment trust of Financial Holdings has launched ETFs. The scale of Taiwan’s ETFs has already exceeded 2 trillion yuan. For semiconductors, 5G, AI, electric vehicles, Metaverse, etc., all ETFs named after high technology must buy TSMC. , ETFs with high “accumulation” are very popular, and many ETFs hold more than 40% of the shares. The number of “quasi-shareholders” of TSMC is difficult to estimate.
ETFs are passive funds. When the stock price falls sharply, they cannot move at all. The holding of shares must not violate the fund raising purpose. ETFs called for weights, semiconductors, and 5G cannot adjust their constituent stocks accordingly. The advantages are gone, after all, the proportion is too high.
Such as Fubon Technology (0052), Fubon Taiwan 50 (006208), Yuanta Taiwan 50 (0050), Yuanta Electronics (0053), Yuanta MSCI Taiwan (006203), Fubon Motor Taiwan (0057) ETF, the “volume” is more than 40%; the scale of Cathay Pacific Taiwan 5G+ (00881) is as high as 31.9 billion yuan, and the “volume” is 28%, close to 30%. It can be seen that TSMC has become the unanimous focus of raising new ETFs.
Taiwan stocks fell from above 18,000 points to 16,764 points in March, and the high point in April fell to 15,616 points. It has set a record of 36 consecutive days of buying super-Taiwan stocks, and the statistics of the increase in the stock holdings of the investment trust have seriously misled retail investors, thinking that fund managers are optimistic about the future trend of Taiwan stocks, but this is not the case.
Investment trust funds are divided into active and passive funds. Active funds pursue absolute returns, and the manager is responsible for stock selection operations; as for ETFs that use models, objectives, and follow indexes, they are passive funds. There is no difference between active and passive funds in the daily announcements of investment trusts by the exchange. The frequency, quantity, and scale of ETFs issued by Taiwan hit new highs year after year. Investment trusts raised new ETFs, which caused TSMC to actively buy overweight funds during the process of TSMC’s slump. Really optimistic, but had to buy.
[For the full content, please refer to “Extraordinary Business Weekly” 2022/5/27 No.1303]