Securities Information Disclosure Legal System

After the economy patterns of agriculture and industry , human beings have been in knowledge-based economy since 1970s . Knowledge-Based Economy having been reported by OECD in 1996 pointed out, " This is the type of the economy which is based on production , division and usage of knowledge and information . " In the era of knowledge economy that has been named " Information economy " by economist Naspater , Information , material ,and energy have been regarded as three stanchions of economic development of the society .This trend is the most obvious in the trade of financial products .In another-word , financial market may be seen as " information market " , as this sort of dealing results from a series of analysis of information . The more information the listed corporations provide for investors freely and equitably , the more correspondance from the real value of capital to the price of securities . That is the transparency .It's well known that all of the successful financial markets are more transparent.The author has been captured by the securities information since being touched with the securities market for the first time . As security products are invisible , information becomes the only bridge from real capital to securities . Therefore , this dissertation also begin with de discussion on distinction of securities information .In securities market , there exists relatively serious information asymmetry , and investors are always on the worse status . To protect the interest of the investors, legislators designed the law system of information disclosure . It is accept that market participants are best protected if they have sufficient information to make an informed investment decision . In a word , disclosure is the cornerstone of securities regulation .The second part of the dissertation is attempting to canvass some of thelong traditions in establishing regulatory systems which we believe may be of some use today . The issue of information disclosure originates from the separation between management rights and property rights . How can the shareholders supervise the managers and directors in the great modern corporations ? Information disclosure is a sort of efficient method . Hence , the advancing of corporation system , the emergence and the development of securities transaction which makes the more dissolution in the market necessitate of information disclosure .The third part of the dissertation notes the underlying theory on which the system of information disclosure is based . Above all, we discuss the underpinning relation among the principles of openness , fairness and equitability . We can conclude that openness is the premise of another two principles . In the next analysis , market failure theory and government regulation theory are employed to elaborate the information failure in securities market and the redressing function of mandatory information disclosure against this failure . Finally , it defends the basic status of information disclosure in securities regulations by law that the voluntary disclosure by the listed corporations exist deficiency naturally .The last part of the dissertation focuses on the issues and the matter in the course of establishing de disclosure system of China . Meanwhile the purpose of research on the significance of information disclosure is to perfect the current system . In near future ,we hope that Chinese Securities Regulators are able to provide investors protection , public confidence and an efficient market primarily through the information disclosure system.