The Study On The Sponsor’s Civil Liability System In China Secuirties Market

Sponsor is the a kind of securities institution to be the guidance、recommendation and supervisor when the corporation through the admission processand its subsequent life as a public company in the exchange market andindependently undertake risks and responsibilities. China’s securities marketexperience a historical changes of administrative examination and approval system tothe channel system and then to the sponsor system. The securities supervisingadministrative department of China brings in this system so that the sponsor cancontinuously instruct and supervise the issuing listed company, and finally enhancethe quality of listed company and protect the interest of the investors. However, dueto the poor maneuverability of the current sponsor civil liability provisions, thesponsor system did not reach the initial expectations in China’s securities market aswell as bring a negative influence to the integrity of the securities market which isdifficult to protect the interests of investors either.The various legal relationships in the process of recommendation betweensponsors and limited company, investors, the China Securities RegulatoryCommission, stock exchanges and other intermediaries lead to different legalresponsibility. The current sponsor system of legal responsibility includes theadministrative responsibility, civil liability and criminal liability. The administrativeresponsibility of the sponsor weakened its civil liability on the effectiveness and thelack of civil liability also reduces the effectiveness of the sponsor system. Thus,improving the civil liability of the sponsor liability has a very important studysignificance because it can promote the function of the sponsor system, promote therealization of the goal pursuit of the sponsor system to be realized in actual socialadjustment, and civil liability system based on the sponsor.The civil liability of the sponsor is the obligations undertook by false behaviors during the period of recommendation. Our country makes laws and regulations toclearly define the duties and obligations of the sponsor. The civil liability of Sponsorsystem implies the theory of autonomy, the principle of good faith theory, commoncivil law of tort theory, and agency theory. According to the duties andresponsibilities of the sponsor, its civil liability can be classified as a contracting faultliability, liability for breach of contract and tort liability.There are few laws of the civil liability of the sponsor in the current Chinasecurities market. Ana the limitations of current civil liability of sponsor systemincludes flawed design of the sponsor system, vague sharing mechanism betweensponsor and other participants, and poor Disclaimer reasons. At the same time itweakened the effectiveness of the sponsor system.