Legal Research On Information Asymmetry In Sovereign Wealth Funds Investment

With the rapid development of Sovereign Wealth Funds in recent years, it has also generated controversies between host countries and home countries. The focus of all investment disputes and the crux of the problem is information asymmetry. Different from the general asymmetric information, the information asymmetry in Sovereign Wealth Funds investment has several characteristics, deciding that the problem should be specifically discussed and analyzed. The innovation of this paper is realizing information asymmetry in Sovereign Wealth Funds investment is the center of controversies. Based on this point, the paper then systematically analyses both domestic and international levels of the relevant legal systems and legislative developments, and gives recommendations to China's practice.The paper consists of five chapters:The first chapter briefly describes the general problem of information asymmetry in portfolio investment, and analyzes the connection between information asymmetry and disclosure regulation.The second chapter discusses the specific problem of asymmetric information in Sovereign Wealth Funds investment. The problem occupies an important position in all related controversies and has several specificities. Then it discusses the connection between Sovereign Wealth Funds'information asymmetry and disclosure of information and points out the shortcomings of relying solely on information disclosure.The third chapter mainly analyses the domestic legal regulations related to Sovereign Wealth Funds'information asymmetry problem. These include host countries' disclosure requirements and home countries'information disclosure system. Based on the analysis of domestic legislation, it concludes that unilateral national legislation is inherently flawed.The forth chapter describes the current international level of bilateral and multilateral legislative achievements to solve the problem of information asymmetry in Sovereign Wealth Funds investment and points out its shortcomings. After affirming the importance of legislative progress, it discusses that existing international legislation is not perfect and the future prospect of international legislative trends. The last chapter analyses China's practice from two perspectives (China respectively as the home country and host country)and makes recommendations such as improving domestic laws, strengthening information disclosure and actively participating in Sovereign Wealth Funds'international legislation.