The Legal Research On The Perfection Of Sponsors System In China

Sponsor system was originally formed by London Stock Exchange in its new second board market in 1995. Nowadays, the United States, Malaysia, Hong Kong of China and other countries and regions have adopted the sponsor systems in the their respective GEM market in varying degrees. The essence of sponsors system is to strengthen the responsibility of sponsors in the process of security issuing, and then urge the sponsor to work with other market intermediaries to exert mandatory monitoring and verification on listed companies, thereby to enhance the quality of listed companies, improve the financing efficiency of the listed companies, maintain the order of securities market, and protect the interests of public investors.The sponsor system in our country began in February 1st,2004. In recent years, the frequent amendments on the sponsors system reflect the supervisory governors' determination to explore and make the system more accommodated to the domestic securities market. The establishment of sponsor system alleviated the disadvantages of China's securities market to a certain degree, and was contributed to the sustainable, stable and healthy development of the capital market. Meanwhile, we should also be aware of the problems existing in the sponsor system which need to be revised a perfected. At present, the disputes of the current sponsor system focused on the following aspects:the mechanism of selecting sponsor representatives is unreasonable as it is focused too much on exams; compared with the current situation of our securities market, the time limits of sponsor's responsibility is too short which may make the system not conducive to exert its effectiveness; the accountability system of the sponsor needs to be perfected, lacking of civil liability provisions results in a low cost for the sponsor to violate the rules. Therefore, we should learn the experience from those mature foreign securities market, combining with China's reality, and then constantly explore and perfect our sponsor system.