HKEX proposes to further expand the Paperless Listing regime
to dovetail with the Uncertificated Securities Market regime
The Hong Kong Stock Exchange (“HKEX”) has published a consultation paper proposing to (i) further expand the “paperless listing regime” in relation to equities securities including mandating listed issuers to allow shareholders to make or receive payments electronically and communicate voting and other instructions through electronic means and (ii) introduce minor amendments to the Listing Rules which will impact Chapter 37 listed debt securities. The paperless regime proposals dovetail with the uncertificated securities market (“USM”) regime announced by the Securities and Futures Commission (“SFC”) in July 2024. If adopted, the implementation of the paperless regime proposals will align with the launch of the USM regime, which is expected to take place at the end of 2025.
The consultation is open for comments until 18 October 2024.
In this bulletin, we consider the background and proposed timeline for the implementation of the USM regime, as well as the proposed key changes under the paperless regime. The bulletin is available in both English and Chinese.
For more information on the Chapter 37 proposals, please click here to read our separate client alert.
