About USM
The Uncertificated Securities Market (USM) is a new option that allows investors to hold shares in their own name without needing paper share certificates, making share ownership and transactions more convenient. The target implementation date is 16 November 2026. For more information, please check out the SFC website.
USM is different from existing broker-held paperless investing because it allows investors to hold securities electronically in their own name. Investors can remain registered holders, deal directly with the company and enjoy benefits including zero dividend and holding maintenance fees, plus have the convenience of electronic holdings and transfers without relying on paper share certificates.
No. Dematerialisation is not mandatory and investors can continue to hold their existing paper share certificates. However, once a company's shares have migrated to USM, registered shareholders will need a USI account before they can transfer their shares. Investors intending to subscribe for new shares using a white application form should also apply for a USI account in advance. There is no need to dematerialise immediately, and investors can decide when to make the transition.
Investors can register with a USI facility online through their relevant Approved Securities Registrar (ASR). Computershare's USI facility is called Investor Centre Hong Kong. It allows investors to view and manage their profile, update personal information, receive electronic communications, submit transfer instructions and respond to certain corporate actions online.
No. USM begins on 16 November 2026, but existing issuers will transition in stages. When your shares are affected depends on when your issuer joins the regime.
"For a registered shareholder holding paper share certificates: Register for a USI facility.
Present the share certificate(s) to the relevant ASR when the shares become a participating security under USM.
The ASR will verifiy the certificate(s) and convert the holding into paperless form. Once completed, the shareholder receives a notification and can view and manage their holding through the ASR's digital platform."
No. The launch of USM on 16 November 2026 does not automatically make existing paper certificates invalid. Shareholders should retain their certificates until their issuer has migrated to USM and they choose to dematerialise their holdings.
No. There is no requirement to rush. Investors can continue holding their existing share certificates and decide for themselves when to dematerialise, subject to the arrangements in place when their issuer migrates to USM.
USI setup
An ASR does not automatically enrol registered holders in a USI profile. Registered holders must set up a USI profile with the relevant ASR and obtain a USI identifier before they can view or transact on their uncertificated holdings in participating securities.
It is not mandatory, but investors are encouraged, but not mandatory, to create a USI profile with an Approved Securities Registrar (ASR) to directly hold and manage participating securities in their own name. Securities held through a broker remain under a nominee structure, where the investor is the beneficial owner but not the legal title holder.
Investors may be able to set up their USI profile with the respective ASR ahead of the go live date of USM on 16 November 2026. Please check with the relevant ASR as to what is possible.
Computershare has launched the Investor Centre Hong Kong App which will serve as the USI facility for investors to access and manage securities holdings administered by Computershare when USM is launched. The App is now available on Google Play and the Apple App Store (Computershare Investor Centre) for USI profile creation.
USI management
Keep your paper certificates in a safe place. Once the securities become participating securities, you can complete the dematerialisation process if you wish to hold them electronically.
For an individual USI holder, the USI profile is managed by the holder.
For joint USI holders, the USI profile may be managed by one joint holder, provided that all joint holders have executed a valid consent form.
For a corporate USI holder, the USI profile may be managed by an authorised person, provided that the registrar has received appropriate authorisation from the corporate holder.
Yes—this is generally possible where the custodian or nominee is the registered holder (i.e. the securities are held in the custodian’s or nominee’s own name). The USI user journey varies depending on the ASR. Please contact the relevant ASR for details specific to your arrangement.
Securities holding arrangements
Yes. Physical share certificates issued by the overseas principal registrar remain valid. If the shareholder has set up a USI profile and transfers those holdings to Hong Kong, the securities will be recorded in the Hong Kong Register of Holders (ROH) in uncertificated form.
If an investor keeps securities in a broker account, their experience with the broker will remain unchanged after USM.
If an investor wants to hold securities in their own name (after the securities become participating securities), the investor must:
- set up a USI profile with the relevant ASR; and
- instruct the broker to send a transfer instruction to that ASR.
The on-market transfers process is completely unchanged under USM and there is no direct relationship with the UNSRT system.
"An off-market transfer refers to the transfer of legal title to securities recorded on the Register of Holders (ROH) from one holder to another, other than through an on-exchange trade.
For detailed information on the various transfer scenarios and the applicable processes, shareholders and issuers may refer to Chapter 5 – Changes to Transfers in the FSR' Information Paper for Issuers and Shareholders.
FSR Info paper: https://teams.public.onecdn.static.microsoft/evergreen-assets/safelinks/2/atp-safelinks.html".
Others
Personal information available for public inspection in the Register of Holders (ROH) will remain unchanged. However, the register will also show the number of units of participating securities held in uncertificated form.
An Approved Securities Registrar (ASR) does not have the authority to write off or cancel such shares on its own.
The treatment of the holdings, including any write-off, cancellation, or distribution, will depend on the directions given by the court, the appointed liquidator, or the relevant regulatory authorities.
Disclaimer: The information in this webpage, and in any oral presentation made by Computershare, is proprietary to Computershare and any disclosure, reproduction, adaptation, distribution, dissemination or making available of the information within this presentation is strictly prohibited unless prior written consent from Computershare is obtained. The personal and company data presented is entirely fictitious and created solely for reference and illustrative purposes. Any resemblance to actual persons, living or dead, or actual companies is purely coincidental.
Computershare accepts no responsibility for any loss or damage arising directly or indirectly from the use of or reliance on any information contained in this webpage. Nothing in this information paper constitutes legal or other professional advice. You should obtain independent legal or other professional advice before taking actions relating to any matters provided in this webpage.