Preface

The Stock Exchange has announced a suspension on margin trading for certain securities. Following a review of the first-quarter 2025 financial reports of listed companies (excluding financial holding companies), the announcement identifies firms with per-share net values below their face values. This decision aims to uphold the integrity and stability of financial markets.

Lazy bag

Key highlights include the suspension of margin trading for securities with net values under par, affecting four companies from May 23, 2025.

Main Body

The announcement from the Stock Exchange on the suspension of margin trading and short selling for certain companies primarily revolves around the financial health markers observed in their recent financial reports. As of the recent evaluation, four companies—Ye Xing (2007-TW), Yuan Xiang Lai (2712-TW), Zhen Da (3149-TW), and Jin Wan Lin - Chuang (6645-TW)—have shown per-share net values falling below their designated face values. Consequently, from May 23, 2025, any securities of these companies will see a temporary halt on any margin-related trading activities.

This measure serves as a proactive step to ensure that market activities remain in alignment with existing regulatory standards, thereby safeguarding investor interests. In parallel, five companies, including Zhonghong (2014-TW), Bochun (6141-TW), Taifu - KY (6541-TW), Hua An (6657-TW), and Leihu (8033-TW), have exhibited recovery in their net values, rising above their face values. Consequently, these securities are set to resume margin trading.

It is noteworthy that Luxing (4414-TW), despite recovering its net value position, fails to achieve an immediate resumption. Its status as previously flagged for full cash settlement ensures it remains under suspension in its margin trading capacities.

The Exchange's decisions are rooted in the regulatory frameworks outlined under Article 4 of the 'Securities Eligible for Margin and Short Selling Standards' and Articles 22 and 23 of the 'Regulations Governing Securities Firms' Margin and Short Selling Businesses'. These frameworks guide the Exchange in evaluating and adjusting trading accessibility based on specific financial metrics disclosed in quarterly financial reports.

Key Insights Table