Hong Kong Exchanges and Clearing Limited (HKEx) today announced that its wholly-owned subsidiary, Hong Kong Securities Clearing Company Limited (HKSCC), has introduced additional features to the Stock Segregated Account (SSA) with Statement Service, including electronic voting.

Investors who choose to entrust their shares to their brokers or custodians can ask their brokers or custodians to open an SSA in HKEx’s Central Clearing and Settlement System (CCASS) for them.

An SSA is owned and operated by the broker or custodian.  In using the SSA service, investors can receive statements directly from CCASS or check, through the CCASS Phone System or CCASS Internet System, any share movement and the balance in their accounts.

Electronic Voting

Investors who open an SSA through their brokers or custodians can now enjoy access to an electronic voting service in CCASS.  Through the CCASS Phone System or CCASS Internet System, they can choose to attend corporate meetings, appoint a corporate representative or request HKEx to vote on their behalf through its subsidiary, HKSCC Nominees Limited.  Investors can also request CCASS to alert them of any upcoming shareholder votes by sending them messages via short message service (SMS) or email.

Share Movement Affirmation

Investors using the SSA can opt to use the affirmation function via the CCASS Phone System or CCASS Internet System to confirm transfer of shares out of the SSA.  They can also elect to receive notifications via SMS or emails whenever there are share transfer transactions requiring their affirmation.

Money Settlement

Investors using the SSA can now enjoy the CCASS money settlement service.  Through their brokers, investors are able to request settlement on a Delivery versus Payment (DVP) basis when shares are moved out of the SSA.  CCASS will issue electronic payment instructions to the bank account designated respectively by the broker and investor.  The money will be credited into the investor’s bank account on the next business day.

Removal of Limit on Number of SSAs

To assist brokers and custodians to cater for their clients’ demand for SSAs, the number of SSAs that can be opened by each broker or custodian is now removed.

Investors who are interested in opening SSAs and SSA users may contact their brokers or custodians or the HKSCC Customer Service Centre (tel: (852) 2979 7000 or email: clearingps@hkex.com.hk) for enquiries.

SSA provides an alternative means for investors to monitor their shares entrusted with their brokers and custodians, but it is not a protection scheme as investors’ shares maintained in SSAs are under the name of and controlled by their brokers and custodians.  Investors looking for a high level of control and security can open an Investor Participant (IP) account in CCASS in their own names to directly manage their shares.