New IPO Should Increase Sponsor Risk

Compared with the experts sent by the Commission for the study of materials submitted by enterprises, the sponsors must have a better understanding of the companies they sponsor, and whether they belong to fraudulent listing can be more accurately grasped.

But the key problem now is that sponsors and companies to be listed are all pots and dishes, so that the sponsors can destroy their jobs in a big way.

As a result, sponsors often give assistance to their clients rather than report them. Very few people who are highly aware of the issue often pay high fees through the media to expose new shares, and they may lose their golden rice bowl.

At the same time, this disclosure does not necessarily prevent the IPO process of a listed company.

Therefore, investors often see that it is not the failure of the counterfeiting company to offer shares, but that it has been on the market for quite a long time after the listing.

Is there any way to break the natural alliance between sponsor agencies and listed companies?

There must be some way for the sponsor to refuse the listed companies for the sake of profits.

If the SFC stipulates that all sponsors must pledge their own holdings of high value assets such as blue chips, bonds or cash to the securities and Futures Commission, this is not difficult for hundreds of billions of capital brokerages to invest in the securities and Futures Commission.

Once the sponsor company has committed fraud, regardless of the size and the seriousness of the case, it will confiscate 1 billion yuan of quality deposit and suspend the sponsor business for 3 months. After 3 months, it will be able to resume the sponsor business after paying 1 billion yuan deposit.

These fines can be used to compensate the investors who have been damaged by the counterfeiting, and the rest can be used to supplement the social security fund.

In this way, when a sponsor finds out that his client is cheating, he will think twice about whether to continue the sponsorship business. The high risk of fines may prompt the sponsor to choose the right way, rather than collaborate with the counterfeiters.

In the process of issuing new shares, this column has suggested increasing the process of voting by investors. Although this process can give full play to the supervisory role of the masses, it can only be a useful supplement.

If the risk of sponsorship can be increased, the sponsor will become a pioneer in helping the SFC fight against fraud.

Sponsors can make great efforts to crack down on counterfeiting, and the listing of new shares will be reduced by 90%. China's securities market will also be unprecedentedly purified.