Core Viewpoint - The Hong Kong Stock Exchange (HKEX) is launching a new communication platform called "Hong Kong Stock Exchange Connect" (Connect) to enhance interaction between listed issuers and HKEX, and to modernize the market infrastructure in Hong Kong [1][2]. Group 1: Platform Features - "Connect" is a secure web-based electronic platform that allows listed issuers to make public disclosures, submit case materials, and communicate with HKEX, replacing current email exchanges and electronic form submissions [3]. - The platform will feature a user-friendly interface with information alerts, workflow tracking, guidance, and automated reminders to assist issuers in meeting their compliance and reporting requirements [4]. - The platform is expected to be free of charge for issuers, as HKEX has indicated it will not impose fees for using the issuer platform [3]. Group 2: Implementation Timeline - The platform is scheduled to officially launch in 2026, with a trial version available in the second half of 2025 for users to familiarize themselves with its functionalities [4]. - Guidelines for account opening and user registration will be released by the end of 2025, with phased implementation for document submission starting in the second quarter of 2026 [4]. Group 3: Regulatory Changes - The introduction of "Connect" is part of HKEX's initiative to enforce mandatory electronic submission of documents, contributing to the establishment of a paperless securities market [5][7]. - Currently, while most documents can be submitted electronically, some still require physical copies, particularly for new listings or certain approval processes [6]. - HKEX plans to mandate that all documents be submitted electronically through "Connect," eliminating the requirement for multiple copies of the same document [7].

Core Viewpoint - The Hong Kong Securities and Futures Commission (SFC) has released a consultation summary regarding fee caps for paperless securities, with most participants supporting the proposed fee limits, which are seen as fair and transparent, benefiting small shareholders and facilitating the development of the paperless securities market [1] Group 1: Consultation Summary - The consultation received 11 responses, indicating broad support for the proposed fee limits, which are expected to simplify cost estimation and promote the paperless securities market [1] - The SFC is in the process of incorporating the proposed fee limits into the "Code of Conduct for Approved Securities Registrars" [1] - The SFC has updated its dedicated webpage on paperless securities, including information on the fee limits in the FAQ and consultation document sections [1] Group 2: Specific Fee Limit Proposals - Most respondents supported a fee cap of HKD 50 per USI facility, considering it reasonable and affordable for general investors, which may encourage early participation in the paperless securities market [2] - The proposed fee cap of HKD 5 per ownership document (with a minimum charge of HKD 20) was also deemed reasonable and transparent by the majority, although one respondent noted that it could be burdensome for investors with many ownership documents [2] - There was general support for a fee cap of 0.02% of transaction value with a minimum charge of HKD 20, aligning with the "user pays" principle, while some respondents expressed concerns that the proposed limits could significantly increase costs for large transactions [2]