Like Tree1Likes
  • 1 Post By answerer

Physical share certificates to electronic form?

  1. #1

    Join Date
    Jun 2018
    Posts
    13

    Physical share certificates to electronic form?

    I'd like to transfer my current shares of an LTD to be held by my local bank in the E.U.
    But I only have physical share certificates, and the bank requests that the shares to be held by a custodian bank in Hong Kong in an electronic format for later transferring.

    How would one do this in practice?


  2. #2

    Join Date
    Dec 2002
    Location
    ???
    Posts
    25,997

    HSBC does have a physical share deposit service.

    More discussion here: https://geoexpat.com/forum/155/thread347295.html

    Technically you can deposit your shares with your broker (not all accept physical deposits - check for physical shares deposit charges) and then either sell down or transfer. There are costs associated with every step.

    Have a GeoExpat related problem - please create a support ticket.

  3. #3

    Join Date
    Jun 2018
    Posts
    13
    Quote Originally Posted by shri
    HSBC does have a physical share deposit service.

    More discussion here: https://geoexpat.com/forum/155/thread347295.html

    Technically you can deposit your shares with your broker (not all accept physical deposits - check for physical shares deposit charges) and then either sell down or transfer. There are costs associated with every step.

    I read that thread but that requires the shares to be already deposited and thus be in an electronic format before being able to transfer them.

    I couldn't find anything related to HSBC being able to offer a physical share deposit service.
    Could you please link?

    What brokers would you also suggest?

  4. #4

    Join Date
    May 2006
    Posts
    469
    Quote Originally Posted by snaxks1
    I read that thread but that requires the shares to be already deposited and thus be in an electronic format before being able to transfer them.

    I couldn't find anything related to HSBC being able to offer a physical share deposit service.
    Could you please link?

    What brokers would you also suggest?
    For a HK-listed company, you just walk into the HSBC Main Branch and ask for the Nominee / Share Deposit Services counter. There are probably other branches that can take it but you need to call to ask which ones.

    I'm not sure if it would work for non-HK stocks.
    shri likes this.

  5. #5

    Join Date
    Dec 2018
    Posts
    458

    I'm about to do this for some HK listed 2800 that were issued as part of the IPO (you had to take physical share certificates to be eligible for the loyalty bonus). The fees quoted are:

    $200 fee per counter
    $5.00 for the transfer deed
    $2.50 per certificate


  6. #6

    Join Date
    Jun 2018
    Posts
    13
    Quote Originally Posted by answerer
    For a HK-listed company, you just walk into the HSBC Main Branch and ask for the Nominee / Share Deposit Services counter. There are probably other branches that can take it but you need to call to ask which ones.

    I'm not sure if it would work for non-HK stocks.
    1. The company is not listed but is a Hong Kong entity, would it still be possible to deposit the shares (theoretically it must be as there are a lot of custodian banks etc*)?
    2. How is the valuation of stocks conducted, what accounting methods are used?
    3. Is it possible to deposit the share certificates, via sending them through a courier such as DHL, instead of physically visiting the bank etc, or is it as strict as it's always been requiring physical presence?

  7. #7

    Join Date
    Dec 2002
    Location
    ???
    Posts
    25,997

    Oops. Misread your original post and assumed it was a listed stock.

    As far as I am aware, there is no electronic depository or even a registry for non-listed shares.

    What is your company's policy with regards to valuations and buybacks? Decades ago, when I was in this situation, the company had an internal buyback program and the price was set every six months, with a limited window to sell the shares back. From what I recall in conversations during that time - it was strictly an internal process.

    Have a GeoExpat related problem - please create a support ticket.

  8. #8

    Join Date
    May 2006
    Posts
    469
    Quote Originally Posted by snaxks1
    1. The company is not listed but is a Hong Kong entity, would it still be possible to deposit the shares (theoretically it must be as there are a lot of custodian banks etc*)?
    2. How is the valuation of stocks conducted, what accounting methods are used?
    3. Is it possible to deposit the share certificates, via sending them through a courier such as DHL, instead of physically visiting the bank etc, or is it as strict as it's always been requiring physical presence?
    1. Custodian banks will only take listed shares. A share certificate from a private company is just a piece of paper issued by the company - it doesn't really mean anything. You could open a safe-deposit box to store the certificates.
    2. There are various valuation methods - ask an accountant
    3. You'll need to find someone to accept it first.