Hong Kong stock market moves ahead with paperless IPO plan
- Move brings local bourse in line with international standards
- HKEX must introduce changes ‘step by step’, says industry body chief
The Hong Kong stock exchange plans to become a fully electronic and paperless bourse, starting with the process for initial public offerings from 2022, according to a consultation paper issued on Monday.
Bourse operator Hong Kong Exchanges and Clearing, the city’s Securities and Futures Commission and the Federation of Share Registrars are collecting views on the proposal until April 27.
Confirming a report by the South China Morning Post two weeks ago, the plan is aimed at making Hong Kong’s stock market more competitive and brings it in line with international standards. Paper listings subscriptions have been abandoned by many exchanges globally.
Under the proposal, investors will be able to hold securities without any paper documents, opening and managing their accounts online. The company will send any necessary documents or annual reports electronically to the investors.
There will be two types of account, one tailor-made for retail investors and the other for institutional investors, each with a different technical structure to meet their needs.