Sponsor System

The "sponsor system" for new stock issuance means that the sponsor (brokerage firm) is responsible for the issuer's listing recommendation and guidance, and verifies the company's issuance documents and listing documents. Check whether the information contained is true, accurate, and complete, assist the issuer in establishing a strict information disclosure system, and assume the responsibility for risk prevention. The sponsor institution and its sponsor representatives perform sponsorship responsibilities, but they cannot reduce or exempt the issuer and its senior executives, intermediaries and their signatories from their responsibilities

The most eye-catching provision of the sponsorship system is that it is clear The responsibilities of sponsor institutions and sponsor representatives have been clarified and a liability investigation mechanism has been established. A registration management system for sponsor institutions and sponsor representatives will be established, the recommendation period shall be clarified, sponsor responsibilities shall be established, and continuous credit supervision and "cold treatment" regulatory measures shall be introduced.

Accordingly, any collusion between the sponsor institution or sponsor representative and the issuer will ultimately not escape market punishment