The Hong Kong Securities and Futures Commission announced that the uncertificated securities market (USM) regime is on track for implementation in early 2026, subject to market readiness, following the enactment of the necessary primary and subsidiary legislation that has yet to come into effect. It also launched a dedicated USM webpage, including FAQs for listed issuers and investors on rights and obligations under the new regime. Under USM, newly listed securities will need to be issued in paperless form from the time of listing, meaning investors will no longer be able to hold those securities as paper certificates. Existing paper certificates will not be invalidated, but each issuer will be set a deadline to enable investors to hold and transfer securities in their own names without paper, after which issuers will no longer be able to issue new paper certificates. A detailed five-year implementation timetable is being developed with Hong Kong Exchanges and Clearing Limited (HKEX) and the Federation of Share Registrars Limited, covering issuers from Hong Kong, Mainland China, Bermuda and the Cayman Islands and intended to support the phased participation of more than 2,500 existing issuers. Engagement with stakeholders will be stepped up in the coming months with HKEX and the Federation of Share Registrars, while the specific USM implementation date will be announced in due course.

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