Depository Receipt System And The Relief Of Investor Rights

Depository receipt as a new type of securities,it first appeared and applied in American capital markets.At that time,because British law prohibited British companies from listing in overseas markets,In order to prevent legal restrictions from achieve listing in the USA financing,Depository receipts,a financial derivative,came into being.2001,China began to prepare for the launch of Chinese Depository Receipts,but because of the constraints of the financial system and the immaturity of the capital markets,our country does not have the condition to issue depository receipts.The proposal was therefore put on hold.In June 2018,the CSRC successively issued nine regulations and normative documents,which marked the formal landing of depository receipts in China.However,compared with other countries’ legal system of depository receipts,the lack of specific standards for information disclosure,the failure to establish a conversion mechanism between depository receipt and normal stock and the dilemma of investor rights relief caused by regulatory segmentation.It is from these problems that this article fully absorb a lot of legal mature advantage from other country and region.First of all,the legal nature of depository receipts is defined,and the subject of depository receipt legal system are clarified.Secondly,the information disclosure system is detailed,the information disclosure mode that is always keeping pace with Chinese economic market is determined.Thirdly,in the aspect of foreign exchange management system,the two-way free conversion mechanism with certain quota limit is established to know the connection between domestic and foreign finance circumstance under the premise that the risk can be basically controlled.Finally,in the aspect of protecting investors’ rights,the litigation institution and the non-litigation institution are combined to fully show their own advantages and merit,and jointly protect the investor’s rights and interests has always been the focus of our country’s capital market,but our country only stipulates the right relief way of litigation.Therefore,this paper has added a variety of non-litigation rights relief method,such as securuties settlement,mediation and arbitration,and improved the investor protection fund system in China,and constructed a diversified right relief system for investors.