[Paperless Securities] CSRC: Aiming to implement by November 16, initially starting with new stocks, and expanding to all listed companies within 5 years

The Hong Kong Securities and Futures Commission announced that it aims to gradually implement a paperless securities system (USM) starting from November 16 this year. To make the paperless securities market legislation effective, it is expected to submit a notice of the effective date to the Legislative Council in the second quarter of 2026.

The Executive Director of the Market Surveillance Division of the Securities and Futures Commission,梁仲賢, stated that implementing the paperless securities market system will further enhance our financial market infrastructure, providing investors with more choices, simplified processes, and more opportunities for straight-through processing. A clear timeline has already been established for this important measure. In the coming months and beyond, the Securities and Futures Commission will continue to collaborate with the Hong Kong Stock Exchange and the Securities Registry Companies Association to ensure the smooth launch of the new system and to enhance public awareness and understanding of the new system.

After the implementation of the paperless securities market, newly listed securities must be issued in paperless form from the time of listing. As for securities that have already been listed before the implementation date, issuers will gradually incorporate them into the paperless securities market system within five years. Issuers and the market will receive prior notifications regarding these arrangements. Investors holding share certificates will have the flexibility to choose when to convert their shares into paperless form.

The phased implementation over five years will involve more than 2,600 listed issuers, approximately 4.6 million physical shares held by Hong Kong Clearing to be converted into paperless form, and about 10 million physical shares held by investors outside of Hong Kong Clearing that can be converted into paperless form.

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