Study On Information Disclosure In The Depositary Receipts

The information disclosure system emerged to alleviate the information asymmetry in the securities market and avoid fraud.In the development of the securities market,the information disclosure system has improved market efficiency and reduced the cost of social transactions,which has greatly influenced the modern securities regulatory systems.However,the depositary receipt market is facing more serious information asymmetry:the nature of its cross-listing securities has made it more difficult for securities investors to gain information,resulting in more potential moral hazards and unfair regulation.The efficient market hypothesis theory is the foundation for of information disclosure system.The efficient market hypothesis holds that the price of securities in an effective market should fully reflect relevant information,so the focus of securities supervision should be on the dissemination of effective information.At the same time,according to the theory of Social Costs,the construction of an effective market should be able to reduce the overall transaction costs of the society and improve the financing efficiencyThe characteristics of the depositary receipts require the authorities to change the traditional regulatory ideas and provide supports for companies seeking cross-listing on the premise of ensuring the stability of the capital market,to maintain their competitive advantage.The mainstream regulatory method is to divide depository receipts into different levels and set different information disclosure standards.In the following supervision,the securities regulatory authorities,courts,stock exchanges,intermediaries,and private organizations have also played necessary rolesAs for China's depository receipt information disclosure system,the securities regulatory authority shall adopt differentiated information disclosure rules to replace the existing framework.Besides that,China shall take different regulatory methods,such as self-discipline supervision system and judicial relief,to improve the effectiveness of information disclosure.At the same time,it is important to realize that the unilateral regulatory structure cannot provide enough protection to the investor.The securities regulatory authority shall improve the existing regulatory structure from the perspective of cross-border securities regulatory cooperation.