Last Update: 2026-11-11

The Uncertificated Securities Market (USM) is a major initiative in Hong Kong that enables investors to hold and manage listed securities electronically without the need for physical share certificates.

Last Update: 2026-11-11

The USM regime is expected to take effect on November 16, 2026.

Last Update: 2026-11-11

● Participating Securities
These are prescribed securities that have "activated" the uncertificated function, including shares listed on the SEHK, depositary receipts, stapled securities, real estate investment trusts (REITs), ETFs (limited to ETFs that are withdrawable from the Central Clearing and Settlement System (CCASS)), equity warrants, and rights issues. The issuer has completed steps such as appointing an Approved Securities Registrar and amending its articles of association (removing obstacles requiring physical share certificates), and investors may choose to hold them in their own names in uncertificated form and transfer them through the electronic system. Once a security becomes a Participating Security, the issuer may no longer issue new physical share certificates for that security (existing certificates remain valid, but will not be reissued if lost).

● Non-Participating Securities
These fall within the scope of "prescribed securities" but have not yet completed the above uncertificated procedures and have not formally transitioned to the USM. Within five years from November 16, 2026 (the "Transition Period"), such securities will continue to operate under the current paper-based model, but will likewise be subject to the new fee basis; the service commitment for transfer registration is completion within 10 business days (for Participating Securities, it is "as soon as reasonably practicable").

**Non-Participating Securities are not "permanently non-participating". Under the rules, existing listed prescribed securities must be gradually converted to Participating Securities in sequence during the transition period. Therefore, Non-Participating Securities represent a temporary status during the transition period, not a permanent classification.

Last Update: 2026-11-11

No. USM only changes the way securities are held and registered. It does not affect trading, settlement arrangements or investors' ability to buy and sell securities through their brokers.

Last Update: 2026-11-11

Generally, no immediate action is required. If your shares are already held through CCASS under your brokerage account with Everbright Securities International, your existing holding and trading arrangements will generally remain unchanged.

Last Update: 2026-11-11

No. Investors may continue to hold existing physical share certificates, although the market will gradually move toward uncertificated holdings.

Last Update: 2026-11-11

Dematerialization refers to the conversion of physical share certificates into uncertificated securities held electronically. Once completed, investors will no longer need to keep physical certificates and their holdings will be maintained electronically.

Last Update: 2026-11-11

A USI profile (Uncertificated Securities Investor profile) is an electronic profile used to identify securities holders under the USM regime. Investors who wish to hold uncertificated securities directly in their own names must establish a USI profile with the relevant Approved Securities Registrar (ASR).

Last Update: 2026-11-11

No. Investors must apply directly with the relevant ASR to establish a USI profile.

Last Update: 2026-11-11

Yes. Investors may establish a USI profile even if they do not currently hold any securities.

Last Update: 2026-11-11

Yes. Both local and overseas investors may establish a USI profile if they satisfy the relevant eligibility requirements.

Last Update: 2026-11-11

Yes. Investors may deposit uncertificated securities in their USI account into their broker's CCASS account, but they must confirm and submit the transfer-out instruction through the platform of the relevant Approved Securities Registrar, and submit a USI transfer-in instruction with Everbright Securities International and provide their USI account number.

Last Update: 2026-11-11

No. The instruction must be affirmed by the registered holder through the relevant USI facility operated by the ASR.

Last Update: 2026-11-11

Yes. If the relevant shares are USM Participating Securities, the investor must first open the relevant USI account before withdrawing the shares from CCASS; the broker transfers the shares into the investor's USI account by way of a USI transfer instruction.
If the relevant shares are Non-Participating Securities, the investor needs to submit a physical share withdrawal instruction to their broker in order to hold them in paper form, and the shares need to be transferred into the investor's name.

Last Update: 2026-11-11

Yes.
● If a settlement instruction (SI) transaction involves a change in beneficial ownership (i.e. stamp duty is payable), a clearing participant or custodian participant recognized by the Stamp Office as a recognized person (the "CP") may choose to pay the stamp duty for that settlement instruction through the newly added "Stamp Duty Payment Request" function in CCASS.
● In addition, the types of contract notes supported by this function include "Buy", "Sell" and "Both".

Last Update: 2026-11-11

Yes, demat with transfer and USI transfer involving HKSCC-NOMS must be conducted on a NCBO basis.
● Accordingly, CPs must:
have appropriate controls in place to ensure that, prior to any participating securities being deposited into or withdrawn from their stock accounts, the name and other particulars of the client(s) transferring the securities match those of the client(s) for whose account the securities were, or will be, held in CCASS immediately before and after the transaction.

● CPs must also:
verify, or obtain confirmation from their clients, that the transfer does not involve any change in beneficial ownership. If the transfer involves CBO, the CP will not be able to proceed with the request in CCASS.

Last Update: 2026-11-11

Where a demat with transfer or USI transfer involves a CBO, the transaction must be conducted directly through the relevant ASR.

Last Update: 2026-11-11

Since the USI holder is required to perform the affirmation through the respective ASR to confirm the validity of the transfer, no additional verification of the USI holder’s signature is necessary. However, CPs should continue to follow their internal policies regarding signature verification where applicable.

Last Update: 2026-11-11

There would not be an option to rematerialize securities that are in uncertificated form in any circumstances, except delisting.

Last Update: 2026-11-11

Applications made via HKSCC eIPO channel: Same as current practice, the allotted shares will be held in HKSCC-NOMS' name and credited to the CCASS stock account of the relevant CPs. Investors will see the balance of the allotted shares reflected in their securities accounts with their brokers (CPs), allowing the shares to be traded on the first day of listing.

Application made via White Form eIPO service: The allotted shares will be issued in the name of the investors. Investors will see the balance of the allotted shares reflected in their USI profiles within the relevant ASR's USI facility on the first day of listing.

Last Update: 2026-11-11

For applications made via HKSCC EIPO channel, investors will make IPO applications with their brokers (CPs) and are not required to setup their USI profiles.

For applications made via White Form eIPO service, investors should set up their USI profiles with the respective ASR to receive the allotted securities in uncertificated form. Without USI profiles, the registered holder will become a provisional system-member, and access to these securities may be restricted.

Last Update: 2026-11-12

Investors who wish to hold securities in uncertificated form and in their own names may be subject to two fees as expanded below.

a. USI set-up fee: Securities in uncertificated form must be held and managed through a USI Facility. The investor will therefore have to set up such a facility with the relevant ASR, and a USI set-up fee may be charged for this.
b. Transaction dematerialisation fee: If the securities held by the investor are still in paper form, they will need to be dematerialised, i.e. converted into uncertificated form. A dematerialisation fee may be charged.
c. Transfer and registration fee: If an investor transfers uncertificated shares in their USI account into a broker account for sale, or transfers them to a third party, the Approved Securities Registrar (ASR) will charge a transfer and registration fee.
d. Fee limits for individuals: It is worth noting that the SFC has set limits on any USI set-up fee and dematerialization fee that is charged to investors who are individuals. The limits are:
● for the USI set-up fee — HK$50 per facility (charged by the Approved Securities Registrar to the client); and
● for the dematerialization fee — HK$5 per certificate/title instrument, subject to a minimum of HK$20 per dematerialization request per stock (charged by the investor's broker (CP) on behalf of the collector); and
● For the transfer and registration fee — calculated at 0.02% of the value of the securities transferred (minimum HK$20), charged by the Approved Securities Registrar to the client.

The above limits apply in respect of the ASR’s baseline service, i.e., the service level for completing the USI Facility set-up/dematerialization process within five business days.

e. Fee for non-individuals: While the above limits will not apply in respect of investors who are not individuals (e.g. corporates), the fees charged to such investors will still need to be fair and reasonable in the circumstances, and commensurate with the services provided and work done.
f. Fees payable when depositing securities into CCASS: If investors wish to trade their securities on the SEHK, they will need to deposit them into CCASS. This will entail transferring the securities to HKSCC Nominees Limited. A transfer and registration fee will be payable in respect of such transfers as well. Additionally, if the securities are participating securities but still held by the investor in certificated form at the time of depositing them into CCASS, a dematerialization fee will also be payable.
g. Fees payable when withdrawing securities from CCASS: If investors wish to withdraw their securities from CCASS, a withdrawal fee will be payable to HKSCC, but no transfer and registration fee will be payable to the issuer’s ASR.

For detailed fee information, please refer to our company's fee schedule.

Last Update: 2026-11-11

Yes. Dividend payments will continue to be made based on the records maintained by the relevant ASR and may be paid by cheque or autopay.

Last Update: 2026-11-11

No. Shareholders' rights, including receiving dividends, participating in corporate actions and receiving company communications, will not be affected by the form in which their securities are held.

Last Update: 2026-11-11

If the registered holder has not yet set up a USI profile, the issuer’s ASR will set up a temporary or provisional USI profile in the investor’s name, thus safeguarding the investor’s right to receive the participating securities concerned and any entitlements flowing from such securities. However, the investor will be restricted from viewing or transferring such entitlements until they have completed the necessary procedures and formalities to set up a USI profile.

Last Update: 2026-11-11

If the registered holder needs to sell the bonus shares that are being held in his/her USI profile, he/she needs to ask his/her broker (CP) to submit a USI Transfer request in CCASS to transfer such securities to HKSCC-NOMS. The registered holder must provide his/her USI profile name and USI holder number to his/her broker (CP) for the USI transfer. Please also note that dealing in distributed shares of participating securities typically commences on the allotment date.

Last Update: 2026-11-11

Yes. However, the holder must first complete the relevant lost certificate procedures before proceeding with dematerialisation or transfer.

Last Update: 2026-11-11

Generally, no immediate action is required. If your shares are already held through Everbright Securities International, your existing holding and trading arrangements will generally remain unchanged.

Last Update: 2026-11-11

Last Update: 2026-11-11