Improve The Legal Thinking Of Gem Information Disclosure System

The first batch of 28 companies listed on Shenzhen Stock Exchange innovative board on October 30,2009 marks the beginning of Chinese innovative board. The Innovative Board is an important part of Chinese security market, thus supervision of which is a significant part of securities supervision system. Compared with companies listed on main board, the companies listed on the innovative board have high growth potential, but high risk as well, therefore the risk of failure is higher. In addition, the shares size of innovative board are relatively small, thus price is easily manipulated. In view of above, supervision of the innovative board should be more stringent and effective. This article addresses the issue of how to perfect the regulation system of innovative board in China, from legal perspective, through studying monitoring system adopted by typical innovative board overseas and main board in China.This Article consists of five chapters:The first chapter:Information Disclosure and Innovative Board. The first chapter introduces the definition, history and theoretical basis of information disclosure system. Based on this, the first chapter further elaborates the significance of information disclosure system to innovative board management and specific requirements of information disclosure system under innovative board regulation taking into account the high growth and high risk characteristics of innovative board, that is to pay attention to the information on high growth, key techniques and risks of the enterprise, attach importance to effectiveness of information disclosure, emphasize supervision of information disclosure in advance, taking both factors of protection of investors and efficiency of information disclosure into account.The second chapter:Information Disclosure System on Typical Overseas Innovative Board. The second chapter introduces the NASDAQ,the AIM and the GEM as a typical innovative board market, Then this chapter further explains, compares and analyzes the three innovative markets from the perspective of regulatory system, supervision system and contents of system. After that, the second chapter illustrates the experience that we can learn from these three innovative board markets for the purpose of perfection of our regulatory system.The third chapter:the Current Status of Chinese Innovative Board Information Disclosure System. The third chapter introduces the information disclosure system of our innovative board market and its primary contents. The regulatory system of information disclosure of our innovative board is comprised of basic laws, administrative regulations, divisional regulation and self-disciplined mechanisms, it adopts a uniform central supervision system, establishes an initial public offering information disclosure system and continuous information disclosure system, it emphasizes principle of timeliness and fairness of disclosing information. When it comes to the design of specific system, considering the characteristics of innovative board, such as high risks, our innovative board information disclosure system put some new system into place, for instance, the timeliness of regular report containing business achievement is improved, the ad hoc report is disclosed where necessary, a disclosure standard suitable for our innovative board listed companies is promulgated, the requirement of information disclosure on the first date of an initial public offering is strengthened, the responsibility of disclosing information by controlling shareholder and actual shareholder is increased.The fourth chapter:The Problems Existing Under Our Innovative Board and Analysis of Problems. The fourth chapter introduces the information disclosure system of our listed companies, problems existing in regular reports and ad hoc report system. Accordingly, this chapter brings forward systems to be improved for the purpose of perfection of the current system, for example, there are deficiency existing under information disclosure system of our innovative board, and defects within legal liabilities where there is breach of information disclosure obligation.The fifth chapter:Reflection and Advice on Perfection of Information Disclosure System of Chinese Innovative Board. The fifth chapter put forward specific suggestion and measures to be used for the purpose of perfection of the information disclosure system upon pointing out main problems existing in current information disclosure system of our innovative board market, the fundamental environment for information disclosure should be improved, a multi-level supervision system would better be established, the supervision on information disclosure should be strengthened, the voluntary information disclosure will be encouraged and regulated, the civil compensation should be perfected.