Hong Kong Central Securities Registration: Starting next year, Hong Kong will transition to a paperless securities market related systems are already undergoing final testing

The Zhitong Finance App learned that Hong Kong will transition to the paperless securities market in early 2026. Xiong Ruilu, CEO of the Hong Kong Central Securities Registration Asian Issuer Service of the Stock Transfer Office, said that the official implementation date is yet to be announced by the regulatory authorities, and that the company has become an approved securities registrar (ASR). The company's system is undergoing final testing. It is also expected to assist about 1,100 eligible listed company customers and more than 1.6 million investor accounts to switch to the new paperless securities market system.

He mentioned that if investors want to materialize their securities, they can perform electronic transfers, address changes, bank accounts, etc. on their mobile apps in the future, while also viewing the entire investment portfolio and the total value of all stocks. He also pointed out that there are still many companies queuing up for listing. They are hopeful about next year's IPO market and are confident that they will maintain a market share of about 60%.

According to HKEx data, the paperless securities market will come into effect in early 2026 (the date of implementation of the paperless securities market). The paperless securities market will apply to prescribed securities already listed or to be listed on the Hong Kong Stock Exchange Limited (SEHK) to enhance the efficiency and competitiveness of the Hong Kong securities market by reducing the demand for paper and manual processing, promoting straight-through processing and improving infrastructure in the local financial market.

After the paperless securities market is fully implemented, almost all Hong Kong listed securities can be held in paperless form, keeping the Hong Kong market in line with the world's best practices and improving market efficiency. In the future, stock settlement processing procedures will be faster, making it easier for investors to manage their portfolios electronically. Other market participants (including issuers and intermediaries) will also benefit from the efficiency improvements brought about by simplified and automated processes.