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Securities Admission into CCASS

Introduction

Under the Listing Rules, all new equity securities to be listed are required to be admitted to CCASS as Eligible Securities on or before their first listing or trading date.  Issuers should contact Hong Kong Securities and Clearing Limited (HKSCC) to submit their applications for admission.

Criteria for Admission 

At present, securities admitted for clearing and settlement in CCASS are securities listed and/or admitted to trading on the Stock Exchange.  Eligible securities include ordinary shares, preference shares, depositary receipts, registered warrants, provisional allotment letters relating to nil-paid rights, debt securities, Exchange Fund Notes, Specified Instruments, CMU instruments, Foreign Securities, China Connect Securities, ETFs, REITs, structured products and any  other types of securities to be listed or traded on the Stock Exchange. 

Issuers and their agents should refer to the requirements set out in CCASS Rules Chapter 5 “Eligible Securities and Eligible Currencies” for general admission criteria.  When considering the eligibility of a security for admission to CCASS, HKSCC takes into account various factors, including the type of security, applicable legal, regulatory, taxation and operational details of the relevant jurisdictions that may have impacts to investors in Hong Kong and how these securities can be cleared, settled and custodised in Hong Kong through HKSCC.  For example, to be admitted into CCASS, the security must be freely transferable or deliverable.  HKSCC shall have absolute discretion to determine whether or not an issue of securities shall be eligible or remain eligible for deposit, clearance and settlement in CCASS and be accepted as an Eligible Security.  Issuers or their agents should also refer to the following guide for more details for the eligibility conditions and the procedures and documentations required to be submitted:

  • Guide to Eligibility and Admission of Securities to the Central Clearing and Settlement System (CCASS) [CCASS Guide]

Application from overseas issuers 

Apart from those companies from the Recognised Jurisdictions[1], an issuer from other overseas jurisdictions is required to submit the relevant CCASS admission form detailed below upon application for acceptance as a new jurisdiction or admission of shares as Eligible Security.  These CCASS admission forms aim to collect relevant information that would be used to assess the admission eligibility of overseas issuers.

  •  CCASS Admission Form for New Jurisdiction [CCASS Admission Form_New Jurisdiction] (for applications to be admitted as a new acceptable jurisdiction)

    Submission

    The completed and signed form should be submitted to Listing Department when the application for acceptance as a new jurisdiction is submitted to Listing Department.

  •  CCASS Admission Form for New Listing [CCASS Admission Form_New Listing] (for issuers from acceptable jurisdictions seeking a listing in Hong Kong) 

    Submission

    (a) For new listing applicants, the completed and signed form should be submitted to Listing Department when the new listing application is submitted to Listing Department.

    (b) For listed issuers proposing to list a new class of shares, the completed and signed form should be submitted to HKSCC via: 

      (i) fax (Fax No: 2815 9353); and

      (ii) the original copy by hand or by mail to 30/F., One Exchange Square, 8 Connaught Place, Central, Hong Kong (Attn: Depository and Nominee Services - Stock Admission Section, HKSCC) as soon as practicable  and no later than the time when the relevant issuer submits its new listing application to Listing Department. 

  • CCASS Admission Form for New Listing for Depositary Receipts [CCASS Admission Form_New Listing for Depositary Receipts] (for issuers from acceptable jurisdictions seeking a listing in Hong Kong) 

    Submission

    The completed and signed form should be submitted to Listing Department when the new listing application is submitted to Listing Department

  • CCASS Admission Form for listed issuers proposing to list further issuance of shares of a class that is already listed [CCASS Admission Form_Further issuance of shares of a class that is already listed]

    Submission

    The completed and signed form should be submitted to HKSCC


    (i) by fax (Fax No: 2815 9353); and

    (ii) the original by hand or by mail to 30/F., One Exchange Square, 8 Connaught Place, Central, Hong Kong (Attn: Depository and Nominee Services - Stock Admission Section, HKSCC) as soon aspracticable but in any event no later than the time when the relevant issuer submits its new listing application to Listing Department

Please note that overseas issuer seeking application to be accepted as Eligible Security may be required to make proper disclosure and/or provide legal opinions to address any concerns that HKSCC may have relating to any issues associated with the laws under which the company is incorporated and/or the laws governing the securities or applicable to the affairs of the company.

Apart from the above, issuer and its agents should also identify any other potential legal, regulatory or operational areas which are applicable to the relevant jurisdictions and may have impact to investors’ interests in Hong Kong under the current clearing, settlement and custody structure of Hong Kong.

Under the existing market structure of clearing, settlement and custody for Hong Kong, HKSCC Nominees Limited, the nominee of HKSCC, holds the legal title in all the securities of the issuers deposited into CCASS on behalf of CCASS participants.  Its name is recorded on the branch register located in Hong Kong as a registered shareholder.  CCASS participants hold the beneficial interests in such securities in their CCASS stock accounts maintained with HKSCC.  When a sale or purchase transaction is made on the Stock Exchange, a transfer of beneficial ownership in such securities between CCASS participants is effected by way of book entry transfer across CCASS custody accounts.  Under this model, CCASS participants have proprietary rights in respect of the securities and should be able to create security interests over the securities freely.  As one of the admission criteria, the laws of the place of incorporation of the overseas issuers must accept or recognize the model and structure as described above.

Please note that it is the responsibility of the issuer to provide evidence that the securities satisfy the CCASS admission  criteria.

For further information, please contact HKSCC by sending an email to HKSCC_SA@HKEX.COM.HK.

 


[1] The Listing Rules recognise Hong Kong, the People’s Republic of China (“PRC”), the Cayman Islands and Bermuda for the purpose of eligibility for listing (“Recognised Jurisdictions”).

 

Note: Detailed information on admission criteria is available in the Guide to Eligibility and Admission of Securities to the Central Clearing and Settlement System, issued by HKSCC.


Updated 02 Mar 2017

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