The Research On The Improvement Of China’s Information Disclosure System In Initial Public Offerings

IPO (Initial Public Offerings) information disclosure is to announce theinformation related to the securities issuance which is true, accurate, complete andtimely in the Initial Public Offering, and it is the basic link in securities disclosuresystem. Any limited liability company in order to raise funds to expand the size of thebusiness must be carried for the first time information disclosure, and be approved byregulatory agencies. China’s IPO information disclosure system has made animportant role in safeguarding the interests of investors, boosting investor confidencein the securities market, improving the operation and management of listed companies,guiding the direction of investment, optimizing resource allocation, and promotinggood securities market.Since the reform and opening up, China’s IPO information disclosure system hasexperienced the process from imperfection to perfection, and now has already formeda relatively complete legal system based on the laws and administrative regulations,supplemented by departmental regulations and judicial interpretations.However, IPO information disclosure has exposed many problems during itsdevelopment. The information of companies intending to list is untrue and incomplete,and the supervisory system and civil liability system of information disclosure areimperfect. Firstly causing the problems mentioned above is mainly due to thecompany itself, the information disclosure is not active, and information disclosure istreated as an additional burden. Secondly, there are many problems on the supervisorysystem. Securities Regulatory Commission’s power is too large and has the problemof corruptions; the regulatory powers of self-discipline regulatory agencies are notindependent, and its functions are not clear; contrary to their own practice andconduct, intermediaries driven by economic interests assist enterprises to disclosefalse information, and lost the basic professional qualities. Lastly there are manydrawbacks on civil liability provisions.To solve the problems of the information disclosure., the company itself shouldestablish a sound corporate governance institutions; intermediaries should strengthenself-regulatory mechanism; government agencies not only should strengthen theconstruction of laws and regulations, but also strengthen the function of thegovernment. It is also important to expand the cooperation with the media. Finally weshould improve the corresponding legal system and perfect the civil responsibilitysystem, in order to reduce the problems of our country securities market information.