What do sponsors do?

In the capital market, there are many regulations for the listing of listed companies, and the sponsorship system is one of them. In short, the sponsor system is an important system in the process of listing. Let's learn about it with Bian Xiao.

The sponsor's duty is to recommend qualified enterprises to go public, and to guarantee the information disclosure in the process of listing and whether they are qualified for listing. Sponsors are usually served by reputable and influential institutions. In China, the most common sponsor is a securities company.

The significance of the sponsor system lies in reducing the risk of information disclosure in the process of listing. Because the sponsor is responsible for the information disclosure of listed companies during the listing period, it will urge the sponsor to fully conduct due diligence and accurately check the financial status of listed companies. This can effectively protect the safety of investors.