A Study On The Information Disclosure Mechanism In Hong Kong's Securities Market (Growth Enterprise Market)

In the year 2002, many corporate failures occurred in the United States such as Enron and Worldcom that seemed to be catastrophes to their investors. In Hong Kong, a corporate failure which aroused public concern was a listed company known as Euro-Asia Agricultural (Holdings) Company Limited, which also affected public confidence in the accounting profession. The need for corporate governance reform is clear and it is very important that the collective will to take action does not weaken.With a global economy, corporate governance standards must also be global. Consequently, those Hong Kong companies whose governance systems are not compatible with international standards will lose out in terms of attracting international investment. More than 70 per cent of the international capital market is made up of United States and United Kingdom pension funds, and other institutional investors. These investors are keen on reducing risk. One of the principal ways in which they can do this is by going to markets where governance practices are comparable to those in their home markets. If Hong Kong is to maintain its status as a major international financial centre and capital market, Hong Kong companies must play by global rules, particularly those relating to full and timely disclosure. Corporate governance is not an optional extra for Hong Kong companies. It is an essential overriding element in attracting investment and stimulating economic growth.Premier Zhu Rongji has his motto for the three schools: 'Makes no false accounts' and it was his wish for every student accountant to abide by this entreaty throughout their professional careers. It is also our desire.In the light of the above reasons, I consider it is important to study the topic of the information disclosure mechanism in Hong Kong' s securities market.