Contact
Careers
Related Sites
HKEX Market LME Bond Connect QME HKEXnews GEM CESC Sustainable & Green Exchange (STAGE) Client Connect
繁 簡
> Search
Market
Advancing Hong Kong’s Capital Markets
Vanessa Lau
Vanessa Lau
Chief Operating Officer
Dec 23, 2025

Hong Kong will launch the Uncertificated Securities Market (USM) – an important step in enhancing our markets to make them more accessible, resilient and competitive.

USM follows a series of enhancements that have made participation simpler and driven market vibrancy.

For example, Severe Weather Trading arrangements, introduced in September 2024, have kept markets open to global investors on seven days that previously would have had market shutdowns or stoppages since launch, while August 2025 IPO price discovery reforms listings have facilitated the pricing process and supported robust fundraising.

USM: what it is, and why it matters

USM is designed to modernise processes and provide investors with an efficient way to hold and manage securities electronically in their own names.

Under USM, prescribed securities listed or to be listed on HKEX will transition away from paper-based processes, reducing the need for manual handling, enabling straight-through-processing and elevating Hong Kong’s financial market infrastructure.

To support USM, HKEX will introduce new securities depository processes and a modernised fee structure, working closely with the Securities and Futures Commission (SFC), the Federation of Share Registrars Limited (FSR) and other stakeholders to ensure alignment with global standards and to enable investors and companies to interact faster and more efficiently.


moving cars Hong Kong
How USM benefits the Hong Kong market

The implementation of USM will bring significant benefits to the Hong Kong market.

Firstly, USM means investors can hold participating securities in their own names and in digital form, making it easier for them to manage and trade their holdings. The central nominee structure in the Central Clearing and Settlement System (CCASS) will be retained.

This means that securities held in CCASS will continue to be registered in the name of HKSCC Nominees Limited, maintaining the same service level to our participants, while enhancing operational efficiency by shortening the securities transfer and registration process.

By optimising post‑trade infrastructure and removing paper risk and delays in physical processing, settlement windows are compressed, and, in time, the net effect will be higher throughput, accelerated settlement and a more efficient market.

From an issuer’s perspective, having investors hold participating securities in their own names enhances transparency, facilitates better communication and engagement, and strengthens corporate governance.

USM also advances Hong Kong’s sustainability agenda by reducing carbon footprints linked to printing, transportation, and storage, and by removing single‑use paper from core workflows.

This sets the stage for more market enhancements in the future – ranging from paperless statements and improved electronic communications, to smarter post‑trade solutions and a streamlined board lot framework.


busy street Hong Kong
Preparing for USM

USM is an industry‑wide effort. During a phased transition, prescribed securities will become participating securities in batches. Issuers will announce their USM transition plans in due course.

During the transition, both certificated and uncertificated holdings will be kept running until the transition of the system is completed – an approach designed for readiness and continuity.

Delivering at this scale requires careful preparation, and HKEX will work closely with intermediaries and issuers to plan and implement necessary system enhancements and run practice sessions to help participants familiarise themselves with the upgraded infrastructure and processing timeline.

In parallel, we will modernise the fee structure to make charges simpler, fairer and more predictable – aligning costs with the way a digital market operates and supporting sustainable growth.


Paving the way for the future, reinforcing Hong Kong’s role as a leading IFC
Global capital formation is tilting towards Asia. In this environment, the quality of market infrastructure – how easy it is to access, trade and manage risk – will increasingly define competitiveness.

USM reduces everyday friction across trading and post‑trade, builds confidence through clearer records and makes our markets more accessible and attractive to a broader set of participants.

For investors, simpler processes and better information translate into lower costs, fewer delays and greater certainty. That strengthens Hong Kong’s role as a connector of capital and opportunity.

Hong Kong’s markets have always been built on connectivity, openness and confidence, and USM is built on this foundation and will further enhance accessibility, resilience and competitiveness in a fast-changing world.

And that is how we strengthen Hong Kong’s position as a leading international financial centre – by continuous, practical enhancements that make markets work better for everyone.

Site MapTerms of UsePrivacy NoticeCookie Notice

Follow Us:

Follow HKEX on LinkedInFollow us on WeChatFollow HKEX on YoutubeRSS Feeds
©2016-26 Hong Kong Exchanges and Clearing Limited. All rights reserved.