2025 State-Owned Concept Stocks: 8 Picks and Policy Insights

In 2025, the global economy faces three major variables: the delayed Federal Reserve rate cut cycle, the spread of China's property debt crisis, and disruptions from AI supply chain restructuring. As a result, the volatility of Taiwan's TAIEX index has risen by 23% compared to 2024. In this environment, state-owned concept stocks have emerged as the top choice for defensive capital, thanks to their "policy moat + essential demand" characteristics.

According to first-quarter 2025 data, companies with over 20% government ownership exhibit an average Beta value of only 0.65, significantly lower than the market benchmark of 1.0. More importantly, with increased budgets under the "2050 Net Zero Roadmap" and the "Digital Infrastructure Acceleration Plan," state-owned concept stocks in green energy, finance, and public utilities are expected to be the primary recipients of government contracts.

Definition and Characteristics of State-Owned Concept Stocks

What Are State-Owned Concept Stocks?

State-owned concept stocks refer to publicly listed companies in which the government or state-owned enterprises hold more than 20% of the shares. These companies typically benefit from policy support, securing financial resources and operational stability even during times of market uncertainty.

Common Characteristics of State-Owned Concept Stocks

1.     Government Background: Significant government shareholding implies access to fiscal support and policy protection.

2.     Strong Downside Protection: During economic crises or market turbulence, state-owned concept stocks often perform more steadily and resist market downturns effectively.

3.     Relatively Stable Dividend Payouts: Although not all state-owned concept stocks guarantee steady dividends, many maintain relatively stable distributions, making them suitable for long-term holdings.

Why Do Investors Focus on State-Owned Concept Stocks?

Investors are attracted to state-owned concept stocks mainly because of their relatively lower risk and stable returns. Given the government's significant role within these companies, they often enjoy national policy support. During financial crises or market upheavals, their strong downside protection makes them an ideal choice for preserving and growing capital.

Top 8 State-Owned Concept Stock Picks in Taiwan: Diversified Sectors + Policy Benefits

(1) Screening Logic and Portfolio Advantages

When selecting state-owned concept stocks, we must consider not only the percentage of government ownership but also the stability of dividend payouts. By applying Gasion’s screening criteria—“over 20% government ownership” and “stable dividend payouts over the past ten years”—we can identify a selection of high-quality state-owned stocks from the Taiwan stock market.

•       Dual Safety Margins: 20% government stake + 10 years of uninterrupted dividends

•       Sector Risk Diversification: Spanning energy, finance, technology, and infrastructure

•       Policy Bonus Capture: Targeting "Net Zero Transition" and "Digital Upgrade" budget allocations

(2) In-Depth Analysis of Individual Stocks

4.     1737 Taiwan Salt: National Team for Green Energy Transition

•       Policy Bonus: Exclusive developer for the Ministry of Economic Affairs' 2025 salt-field solar power bidding project

•       Dividend Record: 11 consecutive years of dividend payments, estimated 2025 dividend yield of 4.8%

•       Technical Support: Monthly and quarterly moving averages aligned in an uptrend, MACD histogram turning positive

5.     2002A China Steel Special: Offshore Wind Foundation Leader

•       Monopoly Advantage: 92% market share in Ørsted’s Phase II wind farm project orders in 2025

•       Preferred Stock Protection: Preferred dividend yield of 5.75% guaranteed by contract until 2030

6.     2412 Chunghwa Telecom: 5G + AI Computing Power Giant

•       Policy Moat: NT$60 billion capital injection by the National Development Fund to expand AI data centers

•       Dividend Consistency: 24 consecutive years of dividends, estimated 2025 yield of 4.1% (low volatility characteristics)

7.     2880 Hua Nan Financial: Urban Renewal Financial Flagship

•       Policy Moat: Lead bank for the Ministry of the Interior’s "Urban Renewal 2.0" project loans (38% market share)

•       Dividend Consistency: 18 consecutive years of dividends, planned 2025 cash dividend of NT$1.2 plus stock dividend of NT$0.3

8.     5880 Hekuang Financial: SME Lending Champion

•       Policy Moat: Three-time leader in the Financial Supervisory Commission’s "Inclusive Finance Evaluation," enjoying a 1.5% lending rate subsidy

•       Dividend Consistency: Capital adequacy ratio of 14.8%, higher than the industry average of 12.3%

9.     6183 Trade-Van: Digital Transformation Infrastructure Pioneer

•       Policy Moat: Sole maintainer of the Ministry of Finance’s "E-Invoice Integration Platform" (contract valid until 2028)

•       Dividend Consistency: 9 consecutive years of dividends, estimated 2025 yield of 5.6% (rare high yield for software stocks)

10.  8908 Shin Hsiung: Southern Taiwan Gas Leader

•       Policy Moat: Exclusive operator under the Ministry of Economic Affairs’ "Natural Gas Safety Reserve" program (exempt from bidding)

•       Dividend Consistency: 15 consecutive years of dividends, planned 2025 payout of NT$4.2 (yield of 6.1%)

11.  9931 Shinkong Hi-Tech: Hydrogen Pipeline Pioneer

•       Policy Moat: Demonstration enterprise for the National Science Council’s "Hydrogen Infrastructure" program, receiving a NT$5 billion subsidy

•       Dividend Consistency: 10 consecutive years of dividends, estimated 2025 yield of 5.4%

▲China Airlines (2610) Monthly Revenue Data

Three Major Risks of State-Owned Concept Stocks and 2025 Coping Strategies

Risk 1: Policy Subsidy Phase-Out (e.g., expiration of hydrogen tax credits)

•       Ultima Markets Alert Tool: Set up a "Policy Tracker" to monitor legislative agendas

Risk 2: Geopolitical Shocks (e.g., cross-strait tariff barriers)

•       Hedging Strategy Recommendation: Go long Shin Hsiung (8908) + short TAIEX futures (ratio 1:0.3)

Risk 3: New Dividend Tax Rules (from 2025, offshore income included in minimum tax)

•       Tax Planning Strategy: Hold state-owned ETFs through an offshore account at Ultima Markets 

Choose a Professional Platform to Enhance Your Investment Experience

Investing in state-owned concept stocks requires a thorough understanding of market dynamics and company fundamentals, as well as the selection of a stable and secure trading platform. Ultima Markets (UM) is a professional forex and financial products trading platform regulated worldwide:

•       Global Regulatory Protection: UM is regulated by CySEC, ASIC, and FSC, ensuring the safety of investors’ funds and the protection of your investment rights.

•       Premium Trading Tools and Resources: UM offers MT4, MT5, Web Trader platforms, and a wide range of market analysis tools to support more informed investment decisions.

•       Low Trading Costs and High Execution Speed: UM’s optimized technical infrastructure delivers extremely low transaction costs and fast order execution, maximizing your investment returns.

•       Flexible Investment Options: In addition to state-owned concept stocks, UM also supports forex, futures, commodities, and various other financial products, catering to diverse investor needs.

•       Professional Customer Support: UM offers 24/7 customer service to resolve any issues, ensuring a worry-free investment experience.

Choosing a professional platform like Ultima Markets (UM) helps you achieve a more efficient and secure trading experience when investing in state-owned concept stocks and other financial products. Just a few simple steps to start your seamless trading journey:

•       Step 1: Open an trading account

•       Step 2: Log into the MT5 platform → Search for "TW_GOV" custom state-owned stock index

•       Step 3: Enable the [Smart Fixed Investment Feature] to allocate equal monthly investments into 8 stocks

•       Step 4: Activate [Dividend Notification] and [DRIP Reinvestment] for automated investment processes

Latest 2025 Policy Bonuses: Three Key Agendas to Watch When Positioning in State-Owned Stocks

1.     Q1: Finalization of "Carbon Fee Collection Regulations" → Taiwan Salt (1737) expected to gain NT$230 million in carbon credit revenue

2.     Q2: Review of "Urban Renewal 2.0 Special Act" → Hua Nan Financial (2880) expected to increase lending volume by NT$12 billion

3.     2026 Preview: Expiration of the "Natural Gas Price Stabilization Mechanism" → Shinkong Hi-Tech (9931) to gain expanded rate adjustment authority

2025 will mark a turning point for state-owned concept stocks: driven by both geopolitical hedging demands and an expansion of policy budgets. By investing in a diversified portfolio of eight carefully selected stocks, investors can simultaneously capture a "5.6% cash flow" and "policy bonus-driven price gains."