Deep Dive into Full Delivery Stocks: A Must-Read Guide for Taiwan Stock Market Investors

What Exactly Are Full Delivery Stocks?

In the Taiwanese stock market, full delivery stocks are a special trading system. When a listed company’s operations are poor, facing financial difficulties, or involved in major violations, causing its net asset value per share to fall below the face value of 5 yuan, the stock will be listed on the full delivery stock list by the regulatory authorities. This means that stock investors must pay the full amount upfront at the time of purchase and cannot use credit trading tools such as margin or short selling.

Is There a Chance for Full Delivery Stocks to Turn Around?

Being classified as a full delivery stock is not a lifetime status. When the company’s operations improve and financial indicators get better, there is a chance to revert to regular stock trading. The main conditions for recovery include:

For listed companies: Net asset value per share exceeds 5 yuan for two consecutive quarters, and shareholder equity remains above 300 million yuan for two consecutive quarters.

For OTC companies: Net asset value per share exceeds 5 yuan in a single quarterly report, and shareholder equity shows growth.

Once the conditions for removal are met, the Taiwan Stock Exchange (TWSE) will conduct a formal review on the first business day after receiving all companies’ quarterly reports. After passing the review, the removal takes effect on the second day from the announcement date, and the stock can be re-included in credit trading.

How to Find the Complete List of Full Delivery Stocks?

To check the latest information on full delivery stocks, investors can directly visit the official website of the Taiwan Stock Exchange (TWSE). Navigate through “Trading Information” → “Change Trading” options to view the full list of full delivery stocks and related details.

How Do the Buying and Selling Processes of Full Delivery Stocks Differ from Normal Stocks?

Buying Steps

Transactions involving full delivery stocks must be settled in cash; they cannot be ordered directly through a personal account. The correct process is: first, transfer the total purchase amount (including fees) into the broker’s designated settlement account, then inform the clerk of the stock code, quantity, and other details to execute the order. Investors usually transfer an amount slightly higher than the expected purchase amount to avoid order failure due to insufficient funds. Any unused balance will be refunded to the individual account before 3:30 PM on the same day.

Selling Steps

Selling full delivery stocks requires prior application for stock reservation (pre-register the stocks to be sold) with the broker, usually via phone. The broker will record the call, and some brokers also offer app-based application functions. After approval of the reservation, investors can then independently instruct the sale. If the stock is not sold on the same day, they need to re-reserve if they wish to continue selling the next day.

Major Taiwanese Brokers’ Full Delivery Stock Trading Services

Currently, many well-known brokers in Taiwan offer full delivery stock trading services:

Fubon Securities — As one of Taiwan’s largest securities firms, provides comprehensive online trading platforms and professional full delivery stock services.

Yuanta Securities — Has the widest network of branches, supports mobile device ordering, and cloud synchronization, with complete full delivery stock trading services.

CITIC Securities — With extensive experience in financial markets and a professional team, offers consulting and support for full delivery stock trading.

KGI Securities — An established broker known for its one-account system and sub-account management, also supports full delivery stock trading.

Risks and Precautions When Investing in Full Delivery Stocks

Due to their special nature, full delivery stocks carry significantly higher risks compared to ordinary stocks. Investors must fully understand the following points:

High operational risk — Companies listed as full delivery stocks often face operational decline, financial crises, or legal disputes. These stocks are high-risk investments with greater potential for losses.

Severe price volatility — Since their net asset value hovers near critical levels, their stock prices are highly susceptible to market sentiment, with volatility far exceeding that of regular stocks. When stocks switch from credit trading to full delivery, they are prone to continuous limit-downs.

No dividends or distributions — Unlike ordinary stocks, full delivery stocks do not pay cash dividends or offer rights issues. The only way for shareholders to profit is to wait for the company to turn around; once the stock reverts to a regular stock, dividends can then be received.

Limited liquidity — Full delivery stocks are only matched every 30 minutes, and due to low trading activity, they often face situations where there are no buyers or sellers, making trading difficult and increasing transaction costs.

Investors must carefully assess their risk tolerance before entering, and conduct thorough fundamental and technical analysis to make informed investment decisions.