Sponsor System

Since the London Stock Exchange founded Another Investment Market (AIM) and created "sponsor system" on June, 1995, Toronto stock exchange, the Hong Kong stock exchange, Malaysia stock exchange (MESDAQ), and Chinese stock exchange are successively introduced "sponsor system". The sponsor system was based on the basic theory that securities market is with asymmetric information, to break the asymmetric information situation and establish effective market, it is necessary to establish a "financing agency" to make sure these companies who will ask for listed companies with the application requirements by rules, and ensure the quality of information disclosure and give the sponsor the corresponding rights to protect interests of investors effectively.China's securities market is a kind of typical emerging market and is experiencing the reform course form government-led system to market system, the stock issuing system also experiencing the course from "examination and approval system" to "system of approval", to "registration system" in future, according to this process, China Securities Regulatory Commission (CSRC) introduced "sponsor system" to China's securities market in 2004, and firstly amended it in 2008.The sponsor system in mainland, China had a positive effect, cultivated a group of sponsors and the representatives with high quality, improved the quality of listed companies and get support form the market. At the same time, sine the legal regulation in China's securities market is incomplete, there are many defects with the young Chinese sponsor system, so it is very necessary to perfect it. This essay mainly is to found out the defects in the sponsor system of China through the comparative analysis, and puts forward some suggestions on perfecting our sponsor system, including five parts:The first part is to discuss some theories, which the sponsor system based on, to explain the necessity of the sponsor system and basics.The second part is to introduce and analyze the sponsor systems of some countries (regions) in the world.The third part focuses on introducing the latest sponsor system in China.The forth part is to compare the sponsor system in other countries (regions) with it in China to find out the defects and limitations of the system in China.The fifth part is to give some advice to perfect the sponsor system in China.