A dispersion liquid including micro-capsules containing a cholesteric liquid crystal as a core material dispersed into a binder resin solution is applied to and dried on a substrate formed an electrode thereon to form a display layer. Then, a light shielding layer is formed and an adhesive layer is formed thereon. On the other hand, a photoconductive layer is formed on another substrate formed another electrode thereon. The substrate formed each layer thereon and the another substrate are bonded to form a display element. The light shielding layer 14 improves roughness on a surface of the display layer and the adhesive layer filled up the roughness. Even if the bubbles occur on a back face of the light shielding layer, the bubbles does not affect the display quality. Because the bubbles are unseen.