2025-02-07-KPMG_China-香港资本市场通讯_–_2025年2月_第3期_2页_245kb

HKEX Consultation Summary: Expanding Paperless Listing Mechanism (2025 Issue 03)

• Background: On February 10, 2025, HKEX published a consultation summary based on its 2024 August consultation, which aimed to further expand the paperless listing mechanism and amend Listing Rules. The proposed measures received broad support, with most respondents agreeing. Minimal changes were made, incorporating feedback from stakeholders.

• Key Amendments Adopted:

  1. Elect Ionic Communications for Holders:

     • Issuers must offer security holders electronic options for sending instructions and receiving company action payments (e.g., dividends).
     • Non-standardized communications will have a five-year transition period from the paperless securities market launch date.

  2. Electronic Payment Options for Dividends: Issuers can use self-selected electronic payment methods (such as Quick Pay, bank transfer, or wire transfer), absent the mandatory use of CHATS.

  3. Hybrid Annual General Meetings (AGM) and Electronic Voting: Issuers must adapt their organizational documents to allow hybrid meetings (comprising physical and electronic elements) and electronic voting. This must be achieved for the first A GM held on or after July 1, 2025.

• Implementation Details and Timelines:

  • Amendments effective from the paperless securities market launch date (defined in regulations).
  • Specific effects and transition periods vary:
    • Electronic holder communications: Transition periods range from one to five years from the launch date.
    • Hybrid AGM deadline: Organizational changes required by July 1, 2025, for meetings held thereafter.

• Other Minor Adjustments: R ecords no further significant changes are specified beyond the above core amendments.