On Sponsorship System In Securities' Market

sponsorship system is a newly established mechanism in China and it is a connection between the "xhannel system" and the future "registration system" for issuance of securities. The establishment of the sponsorship system can resolve the deficiency of our unified regulatory mode to some extent while promoting the self-constraint effect of the market. By analyzing the background of our new system, the positioning of its principle and comparing of the relative system in Hong Kong and in Mainland, this article points out the deficiency of the contemporary rule on sponsorship and some suggestion on its improvement. The article consists of three chapters.First chapter is about the background of the sponsorship system,This chapter introduces the development the sponsorship system. The system of issuance of securities sees three phases: governmental recommendation system, channel system and the present sponsorship system. After a good consideration of the previous experience and lessons, the sponsorship system was finally instituted.Second chapter discusses the principle of sponsorship system.The author generalize the principle as: neutrality of sponsor, protection of investor, transparency of information, coordination between the unified regulation and self-constraint regulation. Research on the principle can provide guide for the improvement of the sponsorship system, it also can supply a gap when definite provision on some new issues lacks.Chapter three focuses on comparative research and provides some suggestions.It is composed of two sections. The first section makes a comparison on the difference between the institution in Hong Kong and in Mainland. Only by comparative method can we find the deficiency in an institutional arrangement. From comparison we see: loopholes in the sponsorshipsystem make it hard to crack down on the transgressor. Blur of the power boundary helps the CSRC abuse its power. Lacking of efficient way of complaint make it hard for the injured party to get recovered. Section two provide some suggestions on how to improve the sponsorship system, it includes making a clear definition on the legal status of CSRC, making relative system coordinate smoothly with sponsorship system, defining the responsibility of relevant intermediate organization, and instituting an efficient credit recording system.