All equity securities, including derivatives, to be listed on the Stock Exchange, must be eligible for admission into CCASS. At present, securities admitted for clearing and settlement in CCASS are securities listed or admitted to trading on the Stock Exchange. These include ordinary shares, preference shares, registered warrants, provisional allotment letters relating to nil-paid rights, debt securities, Exchange Fund Notes or specified instruments, foreign securities and units.

When considering the eligibility of a security for admission to CCASS, Hongkong Clearing takes into account the type of security, its trading currency, fungibility and transferability. To be admitted into CCASS, the security must be freely transferable or deliverable. Its trading currency must be either the Hong Kong dollar or US dollar even though it may be denominated in other currencies.

As securities deposited in CCASS will be registered in the name of HKSCC Nominees Limited (the common nominee), a number of operational issues need to be satisfied before a security becomes eligible for admission into CCASS. These include:

• exempting the common nominee from statutory limitations on shareholdings in banking, insurance and broadcasting institutions;
• exempting the common nominee, as the registered holder of all securities deposited in CCASS, from certain restrictions that listed companies may impose on corporate members;
• exempting the common nominee from declaring the nationality or identity of the beneficial owner of securities when executing transfers; and
• permitting the common nominee to appoint more than one proxy or corporate representative to attend and vote at general meetings and to act as if they were individual members.

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 Hongkong Clearing.