Full Delivery Shares in Taiwan 2025: Prices Below 5 TWD & What Investors Must Know

Gordon Scott, a Chartered Market Technician (CMT), brings over 20 years of experience in active investing and technical analysis.

What Are Full Delivery Shares in Taiwan Stock Market?

Full delivery shares refer to stocks listed on the Taiwan Stock Exchange that have a book value per share below the mandatory minimum of five New Taiwan dollars (TWD). These shares are characterized by low liquidity and are excluded from the Taiwan Stock Exchange weighted index due to their financial instability.

Also known as full delivery stock or full delivery securities, these shares require investors to fully pay upfront when purchasing, as margin trading is prohibited under current regulations.

Understanding the Risks and Characteristics of Full Delivery Shares

Full delivery shares typically represent companies facing financial distress, often lacking sufficient income or assets, and sometimes nearing bankruptcy. Due to this, they carry significant investment risk and limited market liquidity. Investors must pay the full amount in advance, with no margin allowed, making these stocks a high-risk, high-reward opportunity.

In markets like the United States, similarly low-valued stocks are usually traded over-the-counter or in unlisted markets.

Key Insights

• Full delivery shares have a per-share book value below 5 TWD.
• They exhibit limited liquidity and require full prepayment by investors.
• Foreign investors can access New Taiwan Dollar financing exclusively for full delivery, special treatment, and warning stocks to cover settlement shortfalls.

Foreign Investment Regulations for Taiwanese Full Delivery Shares

Since July 23, 2004, foreign investors have been allowed to receive intra-day financing in New Taiwan Dollars solely for full delivery, special treatment, and warning stocks. This provision helps offset settlement timing issues caused by time zone differences. However, pre-arranged cash delivery to brokers is mandatory before trading.

Custodian banks facilitate this process by converting foreign currency to TWD during Taiwan trading hours and settling the foreign currency payment later in the evening.

Case Study: TransAsia Airways - From Full Delivery Shares to Delisting

In November 2016, following two fatal crashes within seven months, TransAsia Airways was downgraded to full delivery shares. It marked the first instance of a listed company on Taiwan’s primary exchange shutting down due to unsustainable losses. The Taiwan Stock Exchange classified TransAsia’s shares as full delivery stock to mitigate potential adverse effects on shareholder equity and the exchange’s weighted index.

On November 21, 2016, TransAsia shares dropped 7.14%, followed by a one-day trading suspension. Upon resumption, shares were categorized as full delivery and declined by the daily maximum of 10%. After continued losses, TransAsia was delisted post a shareholder meeting on January 11, 2017.

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