Hong Kong’s Uncertificated Securities Market begins on 16 November 2026. The new route allows an investor to hold legal title directly in electronic form through an approved securities registrar. It sits alongside, rather than automatically replacing, paper certificates and the existing broker-and-CCASS nominee structure.[1][2][4]
The practical distinction is ownership. A client who holds through a broker and CCASS normally has a beneficial interest while HKSCC Nominees is recorded on the issuer’s register. Under the new own-name route, the investor is recorded directly and can exercise shareholder rights without passing instructions through the intermediary chain.[1]
Three holding methods will coexist
How a Hong Kong-listed security can be held after launch
| Holding route | Legal title and rights | Trading and administration |
|---|---|---|
| Own name with paper certificate | Investor is the registered owner and exercises shareholder rights directly. | Paper and manual transfer remain comparatively slow; the SFC describes around ten business days for legal-title transfers.Source 1 |
| Broker or bank through CCASS | HKSCC Nominees is the registered owner; the customer holds a beneficial interest. | Easy exchange settlement and online broker administration remain, but shareholder rights are exercised through intermediaries.Source 1 |
| Own name in uncertificated form | Investor is the registered owner without a paper certificate and exercises rights directly. | Holdings are managed on an approved registrar’s electronic platform and can move electronically into or out of CCASS.Source 1 |
Trading still requires the security to be available in CCASS
Electronic transfer path
| Direction | Process | Published timing |
|---|---|---|
| Own name to CCASS for sale settlement | Investor instructs the broker; the broker enters the transfer in CCASS; the registrar validates and seeks the investor’s affirmation; legal title moves to HKSCC Nominees. | As quickly as within the same day if the required information is received in time, compared with the current standard paper process of about ten business days.Source 1 |
| CCASS to own-name electronic holding | Investor instructs the broker to withdraw; HKSCC sends the transfer to the registrar; the investor affirms; the registrar records the investor as owner. | As quickly as within the same day when the information is timely and the security is already uncertificated.Source 1 |
| Paper security converted to uncertificated form | The certificate must first be processed and converted through the registrar arrangements. | The SFC describes processing within five business days, rather than the same-day target for an already uncertificated holding.Source 1 |
The electronic link between approved securities registrars and HKSCC is the mechanism behind the speed improvement. It removes physical certificate movement and much of the manual reconciliation, but the transfer still requires complete information, validation and investor affirmation.[1]
The five-year rollout separates launch from full issuer participation
Implementation scope
| Measure | Value | Context |
|---|---|---|
| Launch | 16 November 2026 | The commencement notice brings the USM regime into operation on this date.Source 2Source 4 |
| Existing issuers | Participation within five years | More than 2,600 listed issuers are expected to take the steps needed for electronic holding during the phased rollout.Source 1 |
| New IPO prescribed securities | Uncertificated from listing | New issuers within scope enter the market without relying on the old paper model from the outset.Source 1 |
| Initial jurisdictions | Hong Kong, Bermuda, Cayman Islands and Chinese Mainland | The initial scope depends on the law under which the prescribed security is constituted.Source 1 |
| Approved registrars | Six approved from launch | Only SFC-approved securities registrars may provide the defined USM registrar services.Source 3Source 2 |
The mandatory scope depends on the type of security
The SFC’s FAQ describes prescribed securities as including listed shares, depositary receipts, stapled securities, specified SFC-authorised collective-investment interests such as listed REITs, subscription warrants and rights issues. Callable bull/bear contracts, derivative warrants and ETFs that cannot be withdrawn from CCASS are outside the stated mandatory scope.[2]
The custody choice changes who communicates with the investor
The operating choice concerns both title and administration. A broker-held position is already inside CCASS for ordinary settlement, with communications and voting instructions passing through the intermediary chain. Own-name electronic ownership lets the issuer or registrar communicate directly with the investor, who also manages the registrar account and affirms transfers into CCASS when a sale needs to settle. The electronic link is intended to reduce the delay associated with moving between those arrangements.[1]
Sources & further reading
- Uncertificated Securities Market Hong Kong Securities and Futures Commission · 27 Jul 2026 · Accessed 16 Oct 2026
- Frequently asked questions about USM Hong Kong Securities and Futures Commission · 12 Oct 2026 · Accessed 16 Oct 2026
- Approved Securities Registrars Hong Kong Securities and Futures Commission · 12 Oct 2026 · Accessed 16 Oct 2026
- USM legislation, code and guidelines Hong Kong Securities and Futures Commission · 12 Oct 2026 · Accessed 16 Oct 2026