Uncertificated Securities Market draws 2,700 existing listed companies to register

Résumé détaillé

Hong Kong’s first uncertificated securities market (USM), taking effect on Monday, already has 2,700 existing listed companies in line to integrate into the market over a…

Hong Kong’s first uncertificated securities market (USM), taking effect on Monday, has already registered 2,700 existing listed companies to be integrated into the market over a five-year transition period.

USM removes the need for manual and paper-based processes, provides investors with more choices, enhances market efficiency, and establishes a more robust market.

The Securities and Futures Commission stated that existing physical share certificates will not become invalid or automatically convert into paperless form starting on Monday, while issuers and the market will have the flexibility to decide when to convert their shares into paperless form, and they will receive advance notice of these arrangements.

Market analysis indicates that the new listed securities approval process has not undergone substantive changes due to the arrangement, and issuers have incorporated paperless arrangements into the listing process, with most being well prepared.

Ivy Ng, vice president of corporate services at Computershare Hong Kong, said the regime will solve the problem of losing physical certificates.

Shareholders can easily manage their shareholding accounts, such as resetting their login account or password, simply by clicking on the "forgot password" or "forgot account" functions like on other online platforms, and no longer need to go through procedures such as publishing newspaper notices or reporting loss to replace physical certificates.

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