Notice of Uncertificated Securities Market(USM) Arrangements in Hong Kong Market

The Securities and Futures Commission (“SFC”) has announced that the Uncertificated Securities Market regime (“USM”) will be implemented with effect from 16 November 2026 (the “Implementation Date”). This notice outlines the USM implementation arrangements.

Scope of Coverage

Applicable securities:

Newly listed securities: Existing listed securities: Physical certificates: Prescribed securities include shares, depositary receipts, stapled securities, interests in an authorized CIS (e.g. REIT) withdrawable from CCASS, Subscription warrants (e.g. SPAC warrants) and rights under a rights issue incorporated in Hong Kong, Mainland China, the Cayman Islands and Bermuda. Debt securities and structured products (e.g, callable bull/bear contracts and derivative warrants) are excluded.

Newly listed securities:

Prescribed securities that are first listed after the implementation of USM, such as IPO shares, will be issued in uncertificated form from the date of listing.

Existing listed securities:

Prescribed securities already listed before the USM Implementation Date will be brought into the USM regime in phases within five years after implementation to become participating securities.

Physical certificates:

Existing physical certificates will remain valid after the implementation of USM. Investors can continue to hold physical certificates and enjoy the same shareholder rights. Investors are not required to deposit, withdraw or dematerialise their physical certificates solely because of the implementation of USM. Dematerialisation of existing physical certificates is optional and does not have a time limit. Investors may continue to choose the form of shareholding that best suits their needs.

Your existing arrangements for accessing your holdings, trading securities and receiving dividends through your account with the Bank will remain unchanged.

Arrangements after the Implementation of USM

Following the implementation of the Uncertificated Securities Market (USM), if an investor deposits participating securities held in physical certificate form into the Central Clearing and Settlement System (CCASS) (i.e. transferring such securities into the name of HKSCC Nominees Limited), the securities will be dematerialised and recorded in uncertificated form in the register of members under the name of HKSCC Nominees Limited. Please note that only transfers involving “No change of Beneficial Ownership” are permitted for dematerialisation with transfers

Once your securities have been dematerialised through CCASS into uncertificated form, they cannot be converted back into physical certificate form and can no longer be withdrawn as physical certificates.

You can also set up a USI profile at the relevant Approved Securities Registrar’s (ASR’s) USI facility and submit a USI transfer instruction to transfer participating securities into or out of your USI profile, such transfers must be on a No Change in Beneficial Ownership (NCBO) basis.

Fee Arrangements

In relation to the implementation of the USM scheme, there are currently several changes to the administrative fees charged by our firm for securities trading and related services. Clients can obtain the latest fee details from our website.

The information relating to the USM regime is provided for general information and reference only. Our firm does not guarantee the accuracy, validity, timeliness or completeness. You should refer to the official Hong Kong Exchanges and Clearing Limited website for the latest and more detailed information.

For further details, please visit the Hong Kong Exchanges and Clearing Limited website or contact our Customer Service Hotline at (852) 2287-9178.

CORE CAPITAL SECURITIES LIMITED

10 NOV 2026