Research On The Legal Issues Of Protecting The Rights And Interests Of Depositary Receipt Investors In China

A depositary receipt is a negotiable certificate issued by a depository institutions in the country that represents the ownership of the underlying securities issued by the foreign issuer.The introduction of the China Depositary Receipt System has broken through the nationality restrictions of China’s Securities Law on the listing of foreign companies in China,enriching the types of financial products in China,increasing the investment channels of Chinese investors,effectively diversifying the investment risks of Chinese investors,and enabling Chinese investors to share the fruits of the development of technology companies such as the Internet.However,the introduction of the new system will inevitably bring corresponding risks to Chinese investors.At present,China’s securities market has imperfect legal systems for investor rights protection,insufficient depository institutions,lack of market supervision,immature capital markets and other issues.Therefore,it is necessary to improve the legal status of the protection of the rights and interests of China’s depositary receipts investors in light of the current situation of the protection of China’s depositary receiptsIn the protection of China’s depositary receipts,the investor’s legal status is not clear,the right to know is not guaranteed,the relief is difficult,and the relevant supporting system is not perfect.The rights of Chinese depositary receipt investors will not be guaranteed.In view of these problems,it is necessary to establish a multi-level legal system of depositary receipts,clarify the legal status of the holders of depositary receipts,improve the entitlement entities and procedural protection rules of depositary receipts,and adopt a sound supporting evidence system.In a way,it provides a good “infrastructure” for protecting the rights of Chinese depositary receipt investors.To improve the investor rights protection mechanism,we must play the role of a multi-party body such as the legislature,regulatory agencies,and scholars.We must start from multiple links such as legislation,system construction,and related supporting system construction to build a multi-level and comprehensive investor protection system.In order to substantially safeguard the legitimate rights and interests of holders of China Depositary Receipts,and provide mechanism guarantee for the long-term development of China Depositary Receipts,it provides a rational reference for the practice of China’s depositary receipts investor rights protection.