The impact of the 2007 reforms on the level of information disclosure by the Chinese A-share market

- We examine the 2007 Administrative Measures on Information Disclosure (AMID).
- Number of price sensitive announcements (PSA) by A-share firms' higher post AMID.
- No evidence of any increase in number of PSA by Chinese listed Hong-Kong firms.
- AIMD reforms should improve market fairness and reduce information asymmetry.

This paper examines the impact of China's 2007 Administrative Measures on Information Disclosure by Listed Companies (“AMID”) on the information environment for Chinese listed companies. AMID requires continuous disclosure of price sensitive information and prohibits the selective disclosure of private information.We find evidence that the number of non-periodic price sensitive announcements by Chinese listed companies on the A-share market significantly increased post the 2007 AMID reforms. A greater level of information disclosure should improve market fairness for all investors and reduce any information asymmetry between informed and uninformed investors in the Chinese A-share market.