A Study Of Legal Protection For The International Board Investors

With the further development of economic globalization, the worldwide cross-border financial activities especially the capital markets operations are becoming increasingly frequent. Following the fierce competition in the international capital markets and domestic capital excess liquidity, China is brewing and exploring how to listing the overseas enterprises in the A-share market. It is an effective exploration to build multi-level international capital markets. The introduction of high-quality overseas enterprises to the domestic market helps to improve the international competitiveness of the domestic capital market, and plays an important role in the construction of an international financial center has an important role. Not only it helps to expand the scale of China’s capital market, but also to improve the corporate governance structure of China’s market, enhance the competitiveness of the local financial services institutions, and facilitate our residents to share the economic benefits.Effective protection of investors comes first in the investor information maintaince and stock market premisely development. Due to information asymmetry, information disclosure, geographical restrictions, high relief costs and other reasons investors are faced with great risks.Foreign countries and regions protect the interests of the international board market investors through the building and perfection of more stringent distribution system, the information disclosure system, the extraterritorial application of the Securities Act and the dormitory system. This paper recommands the following actions during the founding of a protection system of China’s International Market investors. First of all, the market access system is a must. More strict acess market system helps to bring in high quality listed companies and successfully foreign enterprises listing. Secondly, in terms of corporate governance structure, the establishment of the board and network technology application facilitate China’s domestic investors to effectively participate in the overseas company governance, providing a low-cost way for investors to have acess to the management rights. Thirdly, information disclosure system is very important. With mandatory disclosure, higher disclosure requirements and expensive information disclosure penalties, it will make China’s domestic investors timely adequately acquire the offshore company’s operating information,which helps investors to make the right investment decisions. The interests of investors are then safeguarded. Fourth, relief rights realization are achieved via arbitration and litigation. The expanding of acceptance of securities cases in the international board in litigation and introduction of class action securities litigation system improve the relief of investors’ rights in China. Fifth, in cross-border coooperation, the basic forms are bilateral cooperation, multilateral and global cooperation. We will try to promote foreign enterprises listing in our country, protect the interests of investors in China, and maintain a healthy and stable development of China’s international board.