On The Protection Of The Rights And Interests Of Investors In China’s Depository Receipts

Depository Receipts(DR)is a common financing method in the capital market.As a kind of financial derivatives,it is favored by issuers and investors because of its particularity in the system.With the deepening of economic globalization,the opening of capital markets in various countries is becoming stronger and stronger,which provides a good environment for the development of depository receipts.In recent years,the pace of China’s capital market opening to the outside world has been gradually accelerated,and the cross-border securities investment system has also been constantly improved,forming the QDII,QFII,cross-border ETF and other investment systems.Many well-known enterprises are limited by the Listing Rules of the domestic capital market,resulting in some well-known enterprises choose to go overseas.In order to meet the needs of the development of the capital market and break the dilemma of the blocked domestic financing channels of overseas enterprises,in 2018,China Securities Regulatory Commission issued the opinions on the pilot of depository receipts,and the basic legal system of depository receipts began to be constructed in China’s securities market.As a new type of financial instrument,the most fundamental thing is the participation and support of investors.However,due to the fact that the depository receipt is still in the primary experimental stage in our country,the protection system of investors’ rights and interests is not mature,which makes it difficult for investors’ legitimate rights and interests to be effectively protected.How to build perfect legal system to protect the rights and interests of investors has become an important problem to be solved in China’s securities market.The writing idea of this paper is to make an in-depth analysis of the current situation of the relevant legislation on the protection of investors’ rights and interests in our country,and find out the theoretical deficiencies in the protection of investors’ rights and interests in respect of the depository receipts.Then,it analyzes the American Depository Receipts,which are relatively perfect in the development of depository receipts,and refers to the more advanced system in the protection of investors’rights and interests in the United States,This paper puts forward reasonable suggestions for the development of China’s securities depository receipts.This paper is divided into four parts,the content of the analysis of depository receipts,from shallow to deep detailed analysis of the topic.The first part focuses on the analysis of the difficulties encountered by the investors in the process of issuing the depository receipts,including the information asymmetry between the subjects of the depository receipts,the restriction of the investors’ autonomy of will and the existence of double agency risks,and obtains the rationality of the protection of the investors’ rights and interests of the depository receipts.The second part focuses on the analysis of the relevant regulations of the existing depository receipts in China,and concludes the deficiencies in the protection of investors’ rights and interests of depository receipts,including the imperfect information disclosure system of depository receipts,the defects in the supervision of depository receipts,the imperfect litigation relief mechanism of investors,and the imperfect cross-border conversion mechanism of depository receipts,The following will focus on solving the above defects.The third part is the analysis of the relevant legal system of American Depository Receipts.American Depository Receipts have perfect provisions in the information disclosure system,the regulatory rules of depository receipts,and the litigation relief mechanism of depository receipt investors.It provides a reference for the fourth part to improve our country’s depository receipts.The fourth part of the article focuses on the improvement of the legislation of depository receipts.Based on the analysis and reference of the third part of the article,it puts forward some suggestions on the improvement of the protection of the rights and interests of investors in China’s depository receipts.At the level of strengthening the information disclosure requirements of depository receipts,we should expand the scope of information disclosure obligations and increase punishment to improve the information disclosure system;In the aspect of improving the supervision system of depository receipts,it can be carried out simultaneously through the establishment of hierarchical subject access system,the establishment of hierarchical supervision mechanism and the improvement of domestic and foreign supervision cooperation;In terms of improving the litigation relief mechanism for investors,the Enlightenment from American depository receipts can be carried out from three aspects:protecting the individual litigation rights of depository receipts investors,setting up a special organization to protect the rights and interests of depository receipts investors,and improving the class action system.