A Study On The GEM Sponsor System In China

Along with the growing development of the securities market, the underlying dangers which exist within the market appears gradually. Especially, with the commencement of Growth Enterprises Market , the supervisory mechanism of the securities market needs to be further perfected .In fact, various kinds of measures have been taken to prevent and dissolve the risks , including intensifying the investigation and crackdown, giving severe punishment to those illegal listed companies and intermediary organs, constituting a lot of laws and rules, establishing independent director system, perfecting the check and balance mechanism and management structure of the listed companies and so on.Among these measures, the securities regulatory commission is designed to strike the illegality in issuing of securities. It is an essential part to regulate issuance of securities and to protect the investors, especially these medium and small sized investors. While focusing on the function of sponsor system on Growth Enterprises Market, the writer extended his ideas by following parts:Part 1 puts discusses china's current sponsor system of securities market through quoting the PE corruption of Guosen securities. What follows is an overall description of the sponsor system ,containing the concept and value of this system and some major GEM sponsor system in the developed capitalized markets in the world.Part 2 discourse the development of the GEM sponsor system in the mainland. In this part, it covers two aspects: simply hackleing the developing phases of sponsor system in the mainland; discussing the content of sponsor system in China specifically.Part 3 generalizes the meaning of Growth Enterprises Market and the GEM sponsor system which benefit the risk-prevention for China's Growth Enterprises Market. The writer analyzes the different kinds of the risks that China's Growth Enterprises Market is facing and summarizes the meaning of sponsor system for preventing the risks in Growth Enterprises Market.Part 4 provides the legal initiatives for completing the sponsor system, being based on the analysis above and the deficiency of this existing system.