Research On The Connection Sponsor And The Honest Of China Stock Market

Honesty is the lifeline of the stock market. In essence, the stock market is an honest market. What the stock market manage and supervise is honesty. At the present stock market, enforcing sponsor system is to solve the problem of the lack of honesty in the stock market, the fraud of listed company, and nuisance of the medium and small shareholders. The stock market of China actualized the sponsor system in Shanghai Stock Exchange Main Board on February 1,2004., and in Shenzhen Stock Exchange Small and Medium Enterprise Board on May 17,2004 It is an important espial of establishing market discipline mechanism. The push of this system will certainly strengthen honesty of the stock market in China, raise the quality of the listed company, and promote the healthy development of the stock market. In this thesis, the author studied the honest value of sponsor system, the influence on the honest construction of china stock market. And the view about the legislation of Sponsor system, the text is divided into five parts.The first chapter introduces the foreign sponsor system and studies its honest value. There are sponsor systems in the Main Board market and Growth Enterprise Market in Britain, Germany. Italy and Hong Kong, only the qualification of sponsor, the subject of the sponsor and the obligation of recommendation are different. In the venture market in Canada, Growth Enterprise Market in Hong Kong, the other investment market in Britain, the Neuer Markt in Germany. France and Italy the sponsorsystem is mainly designed to insure the quality of the company and reduce the systematic risk of the market. The business types of the sponsor systems of those countries are listed company sponsor, security trade sponsor and information disclosure sponsor. Listed company sponsor is also called beforehand sponsor liability or original sponsor liability. Security trade sponsor and information disclosure sponsor are called afterwards sponsor liability, or persist sponsor liability. The sponsor make sure whether the company is suit to appear on the markel: mainly by checking if the issuer conforms to the condition of listing, advising the issuer to perfect the construction of artificial person governing, help to draft the scheme of coming to the market and facture standard document. Then the sponsor has to check carefully the accuracy, integrity of the disclosed information to make sure the investors to make corresponding decision. The sponsor liability promotes the honesty of the foreign countries. It is embodied mainly in the following four aspects: 1) grow the source of honesty; 2)strengthen the responsibility of the agency organization; 3)supervise the honest operation of higher managers; 4) maintain the honest root of docket market.The second chapter and the third chapter study the honest current situation of china stock markets the inevitability of sponsor as security intermediary organ % the positive influence on the honest construction of china stock market. The present honest situation of stock market of China is not very good. It repeatedly happens that the listed companies deceive the common invertors. There are reasons of the defect of orientation of the docket market, and the lack of conception of honesty in our contract relationship. This lead to the agency organizations go against honesty, make believe profit, false packing , and insider dealing with the listed companies. Therefore, we must make laws to control the honesty of agency organizations in the construction of the honest mechanic, "the temporary formula of stock market sponsor" took effect on February l,2004.The sponsor will promote the honest operation of listed company and will make function in the improvement of the construction of the of the listed company governing, the formation of the legal awareness of the higher managers, the raising of the information disclosure of listedcompany, and the protection of the investors. However, it happened in the incident of Jiangsu Qionghua that the sponsor deputy failed to carry out its responsibility. It means we should think over the present sponsor system to perfect it in future legislation.The 41 chapter studies the legislation of Sponsor system. Whereas the sponsor as the important role of the honest mechanic of the stock market. The agency organizations function as the organizer and coordinator in the whole docket market. It bears great risk. So I suggest that we should make "Sponsor Law of the People's Republic of China" ,as the register accountant and lawyer professional legislation to provide point by point the qualification of the sponsor agency, its rights and obligations and liability, considering that the to be amending "law of security" can't particularly regulate the sponsor system. It will promote the sponsor to execute its obligation, and when the investors get calamity, they have legal basis of claim.The conclusion of text is that sponsor system makes great positive effect on the honest construction of china stock market, but the system has many defects. It is necessary to perfect sponsor system in the future legislation.