Research On The Legal System Of Sponsor Supervision In China

The overall implementation of sponsor system in both main board and second board markets is a historical revolution for Chinese securities issuing regulation. The fundamental purpose of Sponsor system is for the improvement of the supervision of Chinese securities market, the better protection of public investors, improvement of the listed company qualities and enhancement of public investor's confidence on Chinese securities market,in order to fulfill the combination of the government statutory supervision and the market's self-supervision. However as sponsor itself is also a market entity who also has the nature to pursue profit, how to improve the Sponsor system, how to improve the supervision on the sponsor system in order to fully active the Sponsor system and make it applicable for current Chinese securities market has become an important issue which needs to be explored. This article has 40,000 characters, consisting of four chapters.Chapter I is relative issues of the supervision on sponsors. This article taps into the discussion of the connotation and extension meanings of sponsor system from the historical evolution of Chinese securities issuing history, introducing the principles of sponsor supervision system, then entered into the discussion of China's sponsor supervision system model by the comparison with foreign legislations.Chapter II is the qualification supervision on sponsor institution and sponsor representatives. This chapter has discussed the qualification supervision on sponsor institution and sponsor representatives respectively and proposed on how to improve the current qualification supervision on sponsor institution and sponsor representatives.Chapter III is the supervision on sponsor activity. Supervision on sponsor activity is the most important part of the entire sponsor legal supervision system. This chapter discusses the supervision models according to sponsor's main activities i.e reference activity, guidance activity and supervision activity. This chapter consists of two parts: pre-supervision—due diligence guidance and dynamic supervision—supervision credit disclosure. Author has provided her own proposals on improvement. Chapter IV is the supervision on sponsor's legal responsibility. Supervision onany subject will lead to the ultimate legal responsibility. It's the same for legal supervision on sponsor system. This chapter has studied the criminal, civil and administrative responsibility respectively and provided the proposal on how to improve the legal responsibility part in the end.This article has focused on supervision, discussing the legal supervision system on sponsor from different angles of the supervision system by comparison with other foreign legislations. In end of each chapter, proposals on how to improve our current system has also provided based upon the combination of the foreign mature legislation and the reality of China.