Analysis Of The Sponsor Regime In China

Sponsors are security companies, in accordance with the law, for the applying company to be listed, to counsel, recommend, steer and do other functions for the company, and during the listing and the time after listing, to disclose information to investors and assume security responsibility for the securities company. Sponsors system means that the sponsor is responsible for the issuer's listed recommendations and guidance, to verify the truths, accurateness and completeness of the information contained in the document, to assist issuers to establish a strict information disclosure system, to bear not only the responsibility of continuing the Steering , but also to assign responsibilities to individuals. The nature of the Sponsor system is to enhance the responsibility of the sponsors in the company listing, to facilitate mandatory external supervision and verification by the sponsor of the listed companies and other professional intermediaries, thereby enhancing the quality of listed companies and the effectiveness of the securities market.Therefore, the sponsors are acknowledged as a part of the issuer's "gatekeeper Sponsors system is originated in the United Kingdom and developed in Hong Kong. From abroad practice, the sponsor system is mainly implemented in the GEM, and the system is highly effective in improving the quality of listed companies, protecting of the legitimate rights and interests of investors. As early as in 2000, China launched the GEM market in Shenzhen Stock Exchange, and carried out a sponsor system in the GEM market, but until December 28, 2003 sponsors system was not really landed on China's capital market, and the carrying out the GEM was dragged behind. However, the moment China's sponsors system was established, it was implemented on the motherboard as well as GEM. Implementation sponsors system of the issuance of securities listed is another major move of the China Securities Regulatory Commission to deepen reform of the system of issuing, an important system to explore the issuance of securities listed on the establishment of the market mechanism. In 2004, China Securities Regulatory Commission stipulated basic market building policies to strengthen the securities basic market building.And there are a lot of the contents of the basis of construction, among other things; one is to raise the quality of listed companies, to do a good job in stock market access. To look at it from the perspective of the issuer audit, it is the first barrier to enter the capital market. At this gateway it is hoped to set up the mobilization of market forces to constrain the quality of the issuer of such a system arrangement Sponsors system is such a system arrangement.After the March of the year 2001, China Securities Regulatory commission has carried out the examined system in which the issuing and listing of enterprises are recommended by the securities company instead of the original examination and approval system performed by the government. Therefore, the duty of securities company is more than ever before. Due to the weak credit consciousness in securities market for a long time and the short beginning of the establishment of the professional ethics about diligent perfection of responsibility and honesty credit, how to implement this duty of securities company efficiently may be concerned with the background of sponsors system. From the aspect of purpose, the leading person of intermediary agency should be made full use of to improve business level of the whole intermediary agency, to ensure that the securities market can realize the transition from the current approval system to the registration system after the implementation of the sponsor system. That is, the issuing and listing of enterprises should be examined by intermediary agency while the investment strategies should be determined by investors who should choose to buy something or not. In this way, administrative intervention will be reduced even no intervention.The key of the implementation of sponsors system lies in carrying out responsibility of sponsors and duty charging system. Sponsors shoulder the obligation of substantial auditing and guaranteeing information disclosure in the process of the issuing and listing of enterprises. However, at present, the auditing right of securities issuing is virtually still in the hand of government's supervision organs. In such background, we have to clear carefully and demonstrate thoroughly about the problems that what kind of role sponsors can play, how much obligation sponsors should bear, how sponsors share the responsibility with the relevant subjects and what kind of sponsors system should be established. But up to now, scholars' study on this subject has just been on an exploring stage and yielded little achievement.Based on the investigation and comparative analysis of the lifelong sponsor system in the British AIM, the assorted sponsor system in Nasdaq market in America, the second-board sponsor system in Hong Kong and some other representative sponsor systems in international market, this paper discusses the producing process and theoretical basis of the sponsor system .On such basis we firstly analyze the localization expansion in the process of introducing the sponsors system combined with native environment ,then points out some defects existing in system design and implementation, and finally comes up with the assumption of perfecting the sponsor system.This thesis consists of four parts below.The analysis and summarization of the practical experience of overseas sponsor system are the main content of the first part. As an all-important system, sponsor system, in light of overseas securities market, gives prominence to such things as elevation of the quality of listed companies, protection of the legitimate interest of investors, and the like.On the grounds of their own characteristics, various regions and countries all over the world have established sponsor systems with individual advantages and characteristics such as the lifelong sponsor system in British AIM, the assorted sponsor system in American Nasdaq Stock Market, and the sponsor system in Hong Kong GEM. As a result, it is no doubt that the analysis and summarization of the practical experience of overseas sponsor system are of referent significance in the improvement of sponsor system in our country.From the perspective of the establishment of sponsor system in our country, the second part systematically sheds light on the details of sponsor system in our country which basically embodies the features of double sponsor, in other words, sponsors factually include sponsor firm and sponsor representatives as well as sponsorial obligations born by not only companies but individuals. As far as sponsor qualification criteria, sponsorial obligations and sponsor legal duties are concerned, stipulations for sponsors and sponsor representatives have been laid down.Focusing on the analysis of the peculiarities of sponsors and relationships with others, the third part devotes itself to acquainting ourselves with the properties of sponsors.The fourth part goes into detail about problems and solutions of sponsor system from two aspects: one is to analyze and expose the deficiencies in the practice of Chinese sponsor system, the other is to put forward propositions of improvement in terms of the shortages above.Nevertheless, the present issues of Chinese sponsor system can be divided into the following. The personnel selection of sponsor representatives attaches importance to not experience but examinations, which lowers the entrance threshold of sponsors. Furthermore, sponsors and sponsor representatives are short of enough independence. In addition to the singularity of sponsor responsibility system, there are some other problems like the lack of integrity of sponsors and sponsor representatives. Taking those issues into consideration, the writer at length comes up with such ameliorative proposals. as enhancement of the entrance threshold of sponsors and sponsor representatives, sponsoring and consignment undertaken by different subjects, establishment of an integrate sponsor responsibility system, the proper release of power to sign, erection of prestige of sponsors, reference of overseas experience, and an attempt made to introduce the model of sponsor partnership system.