A Study On The Principle Of Openness In Securities Law

In recent years,the securities market developed well in China,and it's good for national economic development.However,some people broke the Securities Law now and then.Particularly,plenty of the cases were about Article 86 of the Securities Law of the People's Republic of China,and as these cases were often related to the control of listed companies,they always leaded to disputes and litigation,and were widely concerned.The basis for the information disclosure obligations under Article 86 of the Securities Law will be discussed in this paper.Information asymmetry always appears in the economy activities,and creates an imbalance of power in transactions,and of course,it appears in securities market.As securities matters usually involve large economic benefits,the issuers of the securities may want to get more information asymmetry between them and the investors,at the same time,the ability of getting information is obviously different between the securities investors.And,information is really important in securities matters.So,the information asymmetry in the securities market is particularly noteworthy.To make the securities market be a fair market,and to make it develop better,we have to face the problem and must try to eliminate the information asymmetry.The principle of openness was confirmed as one of the basic principles of Securities Law in China.Look far and wide of laws,administrative regulations and regulatory documents about securities matters in China,we can see the requirements of principle of openness in securities offering and transactions.The provisions of Article 86 of the Securities Law are the manifestation of the principle of openness.As the issues in the application of Article 86 of the Securities Law,this paper discusses and makes recommendations on the administrative responsibilities and civil liabilities based on the existing regulations and practical handling.For the validity of their securities transactions and the rights of shareholders who have not fulfilled the obligation of information disclosure,I try to discuss and make recommendations based on the theory of Contract Law and Companies Law.