The Research On The Sponsors' Civil Liability In China Securities Market

The sponsor system has been running for 5 years in China capital market since its implementation in 2004. As an important system arrangement to establish the market constraint mechanism for securities issuance and listing, the sponsor system plays an active role in enhancing the quality of listed companies and promoting the healthy development of securities market. However, as there are some problems existing in the current regulations in civil liability of the sponsors, such as lack of operability, no guarantee of civil liability investigations and so on, they lead to many problems in China's capital market, such as the behaviors damaging the interests of investors like the disclosure of false information are still existing and become more and more, and once the interests of investors are damaged, they can hardly be relieved timely and effectively. Simultaneously, as the time of the existence of the sponsor system is short, the scholars need to research further on the civil liability of the sponsors.Based on the afore said, it is important that focusing on the analysis of the sponsors'civil liability from the perspective of protecting the interests of investors. Determined by the civil obligation of the sponsors in China's securities market, the sponsors'civil liability are divided into liability for breach of contract, contracting fault liability and tort liability. The imputation principles, constitutive elements of each type of the civil liability are different. Based on the above analysis, by investigating the sponsor systems and sponsors'civil liabilities in United States, Britain and Hong Kong securities market and analyzing the current status of the system of sponsors'civil liability in China, it reveals the problems and puts forward some helpful suggestions to improve the system of sponsors'civil liability in China. Based on the above analysis, it does research on the sponsor systems and sponsors'civil liabilities in the United States, Britain and Hong Kong securities market, and furtherly, it analyzes the current status of the sponsors'civil liability system of China and reveals the problems. After that,it puts forward some useful suggestions to improve the system of sponsors'civil liability in China. From the analysis on the current status of the system of sponsors'civil liability in China, we can find that there are some problems existing in the current system of sponsors'civil liability in China. The system of sponsors'civil liability in China is not perfect, the bearing of the sponsors'civil liability is weak, and the division of responsibilities between the sponsors and other agencies is not fair. For the purposes of intensifying the sponsors'civil liability investigations, protecting the interests of investors better and promoting the development of China's securities market, fair divisions of responsibilities between the sponsors and other agencies, improvements on the existing litigation system of sponsors'civil liability, improvements on the definition of sponsors'legal defense causes as well as improvements on the compensation mechanism of sponsors'civil liability should be made, and the sponsors should be urged from the source to fulfill the obligations according to the laws and regulations to promote the development of China's securities market.