Hong Kong's uncertificated securities market is due to start on 16 Nov

Hong Kong Securities Clearing Company Limited (HKSCC) said on 9 Nov that the Uncertificated Securities Market (USM) regime “will be implemented in Hong Kong on 16 November 2026 (Monday), following the successful completion of the practice sessions on 10 and 11 October 2026 and 24 and 25 October 2026.”

The same day, The Stock Exchange of Hong Kong Limited told holders of Stock Exchange Trading Rights and Exchange Participants that the Securities and Futures Commission “has approved amendments to the Rules” of the Exchange “for the purpose of facilitating the enhancement in the Hong Kong securities market brought about by the implementation of the Uncertificated Securities Market initiative in Hong Kong.” Those amendments “will come into effect on Monday, 16 November 2026.”

What starts on 16 Nov

HKSCC said new CCASS functions “facilitating USM operations, namely Login Deposit/Demat Order, USI Transfer and optional Stamp Duty Payment, together with the new and enhanced reports, will be available on 16 November 2026.”

Clearing Participants and Custodian Participants “must obtain approval from the Inland Revenue Department (IRD) as an authorised person (AP) before depositing or withdrawing participating securities in uncertificated form using a USI Transfer Request or using the optional Stamp Duty Payment for settlement instruction (SI) transactions involving participating securities in uncertificated form with change in beneficial ownership that require stamp duty payments.”

“Following the SFC’s approval of the amendments to General Rules of HKSCC and the HKSCC Operational Procedures, the corresponding amendment to the HKSCC fee structure will take effect on 16 November 2026.” The circular says those amendments “cover the stock withdrawal fee, stock custody fee, registration and transfer fee (also known as scrip fee) and CCASS membership fee,” with details in a Supplementary Information Paper for Intermediaries. After implementation, fees charged by Approved Securities Registrars in three categories “will be passed on to the CPs concerned”: a transactional dematerialisation fee, a transfer and registration fee, and a one-off set-up fee.

New listings, existing certificates and the five-year phase-in

“Prescribed securities incorporated in Bermuda, the Cayman Islands, Hong Kong and Mainland China that are first listed on or after 17 November 2026 will be required to participate in USM and be issued in uncertificated form.” HKSCC said the existing FINI system functionalities “will remain unchanged following the implementation of USM.” “Existing prescribed securities incorporated in these four jurisdictions will progressively participate in USM over a five-year period following the implementation of the USM regime.”

A list of “the first batch of such securities, together with their respective specified dates and participation dates, is expected to be published on the HKEX USM dedicated webpage on 19 November 2026.” The list “will be updated regularly thereafter.”

To support the transition, HKSCC said participants “should communicate the following three guiding principles with their clients”: “Existing physical certificates remain valid, and ownership and shareholder rights remain unchanged.” “Investors may convert their paper certificates into uncertificated holdings at any time to meet their personal needs.” “Only request certificate withdrawals for genuine business or personal needs.”

Why it matters

Analysis. This is an operational go-live, not a further consultation. Custodians, brokers and registrars have a weekend to finish wiring the new CCASS functions, Inland Revenue authorised-person status for uncertificated transfers, and the revised HKSCC and registrar fees. IPO pipelines for companies incorporated in the four named jurisdictions will have to issue in uncertificated form from 17 Nov.

Existing paper holdings are not being cancelled. The five-year phase-in for already-listed prescribed securities, and the first-batch list expected on 19 Nov, will tell operations teams which names move when. Until that list appears, firms should not assume a conversion date for any particular stock.

What we are watching

• The first-batch list of existing prescribed securities, expected on 19 Nov, and the specified and participation dates it assigns.
• How quickly IPO issuers in the four jurisdictions adopt uncertificated issuance from 17 Nov.

Sources

• Implementation of Uncertificated Securities Market (USM) Regime (PT/NIS/CCASS/398/2026), Hong Kong Securities Clearing Company Limited, 9 Nov 2026
• Amendments to the Rules of the Exchange (LSD/079/2026), The Stock Exchange of Hong Kong Limited, 9 Nov 2026