On The Perfection Of The Legal System Of The Chinese Sponsor

First, this article introduces the developing history of China's legal system of issuancesupervision, analyzes the newly-established system of China's securities market, thatis sponsorship, makes a detailed comparison of sponsorship, domestic and overseas,and gives the final conclusion that China's sponsorship shall be improved in severalaspects.China's sponsorship was established according to that of Growth Enterprise Market ofHongkong. Shortly after it was set up in China, Hongkong made a great modificationof its sponsorship, disassembling the functions by absorbing compliance advisor andindependent financial advisor together with sponsors to undertake therecommendation of IPO and subsequent constant supervision. New sponsorship ofHongkong carves up the responsibilities and roles of sponsor, compliance advisor andindependent financial advisor, stipulates the independency and criterion of sponsorsand reconstructs the legal duties of sponsors' due diligence.Material weaknesses have appeared since the mainland adopted the sponsorship.Using this modification of Hongkong for reference, the sponsorship of mainland shallstrengthen the legal duties and roles of sponsors, properly set up the agencies likecompliance advisor and independent financial advisor, to reduce the dependency ofsponsor representatives, so as to form consistent supervision of listing securities.Meanwhile the sponsors' independency shall also be detailed regulated.