Relying on mandatory information disclosure, cultivating and improving the market operating mechanism, and enhancing the understanding and confidence of market participants in the market are common practices in securities market supervision in various countries around the world. The fund market is an integral part of the securities market. No exception. The role of fund information disclosure is mainly reflected in the following aspects:

(1) Conducive to investors’ value judgment

In the process of raising fund shares, the fund prospectus and other fundraising Information disclosure documents clarify the risk-return characteristics of fund products and related fundraising arrangements to public investors, so that investors can choose fund products that suit their risk preferences and return expectations. During the operation of the fund, by fully disclosing information such as the fund's investment portfolio, historical performance and risk status, existing fund share holders can evaluate the management level of the fund manager and understand whether the fund investment complies with the commitments of the fund contract, thereby determining whether the fund Is the product worth continuing to own? At the same time, potential investors can also conduct a rational analysis of the fund value based on their own risk preferences and return expectations, and then make investment choices.

(2) Helps prevent conflicts of interest and transfer of interests

The foundation of the capital market is information disclosure, and one of the main contents of supervision is the supervision of information disclosure. Compared with the substantive review system, the basic corollary of mandatory information disclosure is that investors should "beware the buyer" based on public information. It can change the information disadvantage of investors, increase the transparency of the capital market, prevent conflicts of interest and benefit transfer, increase public supervision of fund operations, and limit and prevent the occurrence of improper fund management and fraud.

(3) It is conducive to improving the efficiency of the securities market

Due to the information asymmetry problem in the securities market in reality, investors cannot effectively screen funds and cannot effectively overcome the problems of fund management. Due to human moral hazard, high-efficiency funds cannot attract enough funds for investment and cannot form a reasonable fund allocation mechanism. Through mandatory information disclosure, hidden information is forced to be disclosed promptly and fully, thereby eliminating inefficiency and disorder caused by problems such as adverse selection and moral hazard, and improving the effectiveness of the securities market.

(4) Effectively prevent information abuse

If regulations do not regulate fund information disclosure and allow insufficient, untimely, and false information to spread, then the market will be flooded with There are various speculations that investors may be affected by this market "noise" and make wrong investment decisions, which may even bring a fatal blow to fund operations, which will be detrimental to the long-term development of the entire industry.

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