Yageo's Stock Price Halved — Is the Bottom Not Yet Reached? 'Chairman's Wife Selling Shares' Shadow Returns as Expert Warns: History May Repeat

Yageo Corporation (2327), Taiwan’s leading passive components manufacturer, has seen significant stock price volatility recently. On July 1, its share price surged to a post-split historical high of NT$1,220 during trading, but within less than a month, it dropped to a closing price of NT$630 on July 20, triggering widespread investor panic. Many investors who bought near the NT$1,000 mark are now facing severe paper losses.

In response, financial influencer Chen Chong-ming, known as the 'Invincible Master,' pointed to one key factor behind Yageo’s sharp decline: market rumors that the major shareholder, 'Chen Family Heritage Company,' unpledged its shares at high prices, reviving fears of the controversial 2018 'Chairman’s Wife Selling' episode. Chen Chong-ming expressed shock, noting that Yageo’s 'Tiger Line' support level is at NT$289.5 — could the stock halve again?

Yageo’s rapid correction has not only significantly reduced Chairman David Hsu’s paper wealth but also refocused market attention on supply chain developments, major shareholder activities, and past controversial events. Recently, rumors circulated that 'Chen Family Heritage Company,' the largest single shareholder with a 6.82% stake, had unpledged its shares at high prices, sparking speculation that the major shareholder might be preparing to offload shares.

In response, Yageo issued a statement on July 17, clarifying that it had received no equity change filings or notifications from Chen Family Heritage Company. The company confirmed that the shareholder’s holdings remain unchanged at 141,441,068 shares, or 6.82% of total issued shares. As a shareholder holding over 5%, any transfer would require prior legal disclosure, which Yageo has not received.

Nonetheless, the rumors have stirred painful memories among investors. In July 2018, during a super-cycle of price hikes in the passive components market, Yageo’s stock reached a historical high of NT$1,310. Shortly after, David Hsu’s ex-wife, Li Hui-zhen, sold 12,000 shares via an after-hours bulk transaction at NT$1,045 per share, cashing out approximately NT$12 billion. The stock then plummeted to NT$203, leaving many investors trapped in heavy losses.

Chen Chong-ming analyzed whether the stock’s halving is directly linked to the unpledging of shares. He explained that pledging shares is akin to borrowing from a bank, and unpledging means repaying the loan — it does not equate to selling shares. However, he acknowledged that unpledging could signal future selling intentions or simply reflect improved financial health. 'It’s just part of a major shareholder’s financial strategy,' he noted.

Still, Chen emphasized that Yageo’s corporate image carries some controversy. 'In 2018, at the peak of the stock price, the chairman’s wife sold shares worth hundreds of billions of NT dollars, followed by a massive price collapse. Investors remember. Is history repeating itself? The Tiger Line is at NT$289.5 — will the stock halve again?'

More exclusive Wind Media reports: · Yageo’s stock crashes 40% — is it time to buy? Experts reveal a second wave of gains: wait for 'this line' before re-entering · Taiwan’s stock market surges 1,000 points — is it a V-recovery or a dead cat bounce? Experts highlight one key defense line: the real show is just beginning · Are memory and passive component markets cooling down? Experts name 8 AI dark horse stocks for H2: the new blue ocean for market capital