Hong Kong investors will be able to enjoy Electronic Initial Public Offering (EIPO) service for the first time Tuesday, according to a report by Hong Kong Clearing Monday.

Hong Kong Clearing announced that its EIPO service will be used for T S Telecom Technologies Limited's flotation on the Growth Enterprise Market (GEM) starting from Tuesday, the first time that the service has been made available to Hong Kong investors.

"The EIPO service is a significant step forward in respect of subscription of new shares, because it reduces costs and clerical errors, shortens turnaround time and eliminates the risk of lost checks and share certificates," said Stewart Shing, chief executive of Hong Kong Clearing.

"Since it uses the electronic mechanism of the Central Clearing and Settlement System, investors will benefit from added convenience and extended subscription hours," he said.

Listed issuers also benefit from the service because it is capable of handling a larger volume of applications as compared with manual processing, Shing said.

"At present, Hong Kong Clearing is also in discussion with several companies that are considering the use of EIPO service for their Main Board or GEM listings," he added. (Xinhua)