E-voting Ends November 16
With the U.S. midterm elections concluded, tech stocks remain volatile. After plunging over 12% in a single day last Thursday, the Philadelphia Semiconductor Index rebounded about 10.8% in recent days, but remains below the 10,000 mark. The only ETF in Taiwan tracking the PHLX, the Cathay Philadelphia Semiconductor ETF, ticker 00830, has fallen from over 100 to the 70 range, closing today at 75.25 yuan, with trading recently turning active. With the split proposal entering the final countdown to the vote, 5 days remain until the November 16 e-voting deadline, and whether the investment threshold can be successfully lowered has become a market focus.
Even 1 Share Can Vote, Aiming for 1-for-5 to Lower to 15 Yuan
According to an announcement from Cathay SITE, 00830 will hold a beneficiaries' meeting on November 19 to vote on whether to proceed with a fund split. Investors who bought on or before October 16 and are on the beneficiary register for this meeting can participate, even if holding only 1 share. Voting can be done via securities firm APPs, TDCC ePassbook or TDCC eVoting service, with e-voting ending at 11:59 PM on November 16; for paper ballots, ballots must be delivered to the designated stock affairs agent by 4:30 PM on the same day, with results expected to be announced on November 20. If the split proposal passes, the split ratio will be determined under the rules based on the fund's net asset value on the day of the beneficiaries' meeting, with the market currently expecting a possible 1-for-5 or 1-for-6 split, bringing per-unit NAV close to but not below the original issue price of 15 yuan. Taking today's closing price of 75.25 yuan as an example, assuming a 1-for-5 split, an investor holding 1000 shares would hold 5000 shares after the split, with the unit price proportionally lowered to about 15.05 yuan, while total holding value remains unchanged. Under Cathay SITE's plan, if the proposal passes, the split is expected to be completed and trading resumed on February 23 next year, but the actual split ratio and trading price remain subject to the SITE's announcement.
AI Infrastructure Support but Short-term Volatility Likely
The 00830 index constituents include global semiconductor companies such as NVIDIA, AMD, Broadcom, TSMC and Micron, benefiting from the recent AI infrastructure investment boom, with fund size and beneficiary numbers continuing to grow, and latest size exceeding 74 billion yuan. Institutional investors note that looking at past U.S. midterm elections over the past 30 years, the PHLX has about a 90% chance of outperforming the broader U.S. market in the first and second quarters of the year following the election, and as election uncertainty is gradually digested, coupled with continued expansion of AI infrastructure demand, semiconductor stocks still have room for performance. However, as the market more strictly scrutinizes AI capex returns and corporate earnings, short-term volatility in the PHLX may continue to widen, and investors still need to watch risks from concentrated investment in the technology sector and exchange rate movements. For 00830, while a split can help lower the capital required per ETF lot and improve trading convenience, it will not change the fund's portfolio or create additional returns. Beyond the November 19 beneficiaries' meeting result, whether semiconductor stocks can extend their rebound will also be key to the ETF's performance.