Paper Hong Kong shares go digital from Nov 16
On.cc · 1 SOURCES1 day ago5 MIN
Summary
Hong Kong’s uncertificated securities market regime will take effect on November 16, with approved securities registrars including Computershare able to start offering related services such as converting securities from paper to uncertificated form. Shareholders who already hold paper certificates are not required to switch immediately, because listed issuers will migrate to the new regime in phases over five years and paper certificates remain important proof of ownership during that transition
Key Points
- Computershare, one of the licensed approved securities registrars, said it can begin uncertificated market services on November 16, including paper-to-digital conversion of securities
- Corporate Services Director of Investor Services at Computershare, Ng Pui-yan (伍蓓欣), said shareholders must keep paper certificates properly until issuers complete migration within five years
- Investors may continue holding paper certificates, or hold through banks or brokers, while those wanting direct electronic ownership must first open a “Share Easy” account
- Using Computershare as an example, individual investors can apply online with identity documents and basic personal data, with account opening taking about 10 minutes
- Most IPOs after November 16 will be issued only in uncertificated form, while existing listed shares will begin phased transition from February over five years
Why It Matters
For retail investors, the regime offers a way to hold securities in their own names electronically and exercise shareholder rights directly, rather than relying on intermediaries. It could also shorten transfers from about 10 working days to as fast as the same day for uncertificated securities, while reducing custody costs and the risk of losing paper certificates after migration is completed