We have previously reported that the Securities and Futures and Companies Legislation (Amendment) Ordinance 2021 (the Ordinance), which laid the framework for an uncertificated securities market (USM) in Hong Kong, was gazetted on 11 June 2021. For details of the USM regime, please see our News & Insights.
The Securities and Futures Commission announced on 30 March 2026, that the USM regime is targeted to be launched on 16 November 2026. A commencement notice will be tabled before the Legislative Council in the second quarter of 2026 to bring the USM legislation into effect.
Upon implementation:
- newly listed securities will be required, from the time of listing, to be issued in paperless form; and
- securities already listed prior to the launch date will be gradually transitioned into the USM regime over a five-year period.
Issuers and market will receive advance notice regarding these arrangements.
For investors who possess share certificates, they have the flexibility to decide when they wish to convert their shares into paperless form.
In preparing for the USM, intermediaries are encouraged to continue working closely with Hong Kong Exchanges and Clearing Limited and should progress their preparatory work (e.g. any adjustments to their business models and operational processes) as quickly as possible to ensure that they are ready for the new USM regime.
For further information, please contact:
Jeremy Lam, Deacons
jeremy.lam@deacons.com
