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Study Of China's Securities Market During The Transition Period, The Sponsor System

Posted on:2007-04-29Degree:MasterType:Thesis
Country:ChinaCandidate:X M ChengFull Text:PDF
GTID:2206360182981034Subject:International Law
Abstract/Summary:PDF Full Text Request
The corn of the sponsor system in China can be summarized as responsiblesponsoring and responsible sustainable maintaining. The system characterized by thejoint and several liabilities of the sponsors (securities underwriters) to the informationdisclosure of the sponsoring objects (the securities issuers or listing companies). Itplays according to the surety obligation of the intermediary to relieve the risk comingfrom the information asymmetry, hereby increase the credibility between the issuer ofcommon shares and public investors. China mainland introduces the sponsor systemin order to establish the market-restriction mechanism of the securities issuance andlisting, to promote the transition from merit regulation to full disclosure philosophy asto enhance the regulation efficiency. Ultimately the introduction is proposed toadvance the qualities of the listing companies, to give more protection to the publicinvestors and boost the confidence of the public investors to the securities market.Nonetheless the sponsor system has the adaptability doubt as an exotic system itself.This dissertation points out that registration issuing approval method is theprerequisite to the market-restriction mechanism formulated by the fame-inspiringcompetition. Under the merit regulation of China mainland, the underwriters areinclined to disprize their fame reflecting from their work, which lead to adverseselection and moral hazard.Confronted with the problem and hazard, what should we do? This dissertationanalyzes and proposes suggestions mainly on two tiers, which are tier of the systemitself and tier of the system environment. On the system analysis, this dissertationpoints out many particular problems and gives advices or suggestions correspondingly.The general direction on this part is to intensify the sponsor's liability constructionand implement. On the environment aspect, to create the fame-inspiring mechanism, Isuggest to promote the securities deregulation continuously.
Keywords/Search Tags:sponsor system, merit regulation/ registration, transition, supervision/regulation
PDF Full Text Request
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