The Study Of Sponsor System Under The Circumstances Of Registration System

The sponsor system was carried out in China in 2004.It has been 10 years from now on. The sponsor system is for purposes of improving the quality of listed companies and the practice standard of securities companies, protecting the legitimate rights and interests of investors, and promoting the healthy development of the securities market. But within such a short time, the sponsor system in China is not quite completed. There is still shortage, which needs to be improved. Otherwise the sponsor system would turn into tools that used to get money out of the investors' pocket. If let that happen, it will definitely do harm to the securities market. So the priority is to complete the sponsor system.The Third Plenary Session of the 18 th Central Committee of the CPC puts forward the requirement of " advance the reform of registration system”, and the “six governmental suggestions” which put forward by the premier Li Keqiang make the registration system as the goal in the reform of issuance and listing of securities.ThentheeighteenthsessionoftheStandingCommitteeoftheTwelfthNationalPeople'sCongresslaunchedDecisionoftheStandingCommitteeoftheNationalPeople'sCongressonAuthorizingtheStateCounciltoAdjusttheRelevantApplicableProvisionsoftheSecuritiesLawofthePeople'sRepublicofChinaintheImplementationofStockIssuanceRegistrationSystemReformwhichprovide a clear legal basis for registration system reform and reveal the prelude of registration system reform in China.The sponsor system is a secondary system based on the registration system. These two systems have very close link between each other. If the registration system is reformed, the sponsor system will also need to be reformed.This article is focus on the sponsor system. It has four parts:The first part is about the origination of the sponsor system.The second part introduces the present sponsor system in China. It includes the positive aspect and the negative aspect of the present sponsor system, also includes the changes about the sponsor system which has already been taken place.The third part is mainly talking about the challenges which the sponsor system will face when the registration system is implemented.The forth part is the most important part of the whole article which is about how to improve the present sponsor system.