【正确答案】In accordance Article 11 of the Securities Law, the term sponsor refers to a qualified person (or an institute) who is responsible for verifying cautiously the application documents and information disclosure materials of any issuer, and supervising as well as urging the issuer to normatively operate the offer of securities.

【正确答案】The objective of the legislation to set up the system of sponsorship is to prevent the market risks from occurrence, regulate the operation of the listed companies and protect the rights and interests of investors through the joint legal liability of the issuer and sponsor.

【正确答案】In accordance with Article 192 of the Securities Law, a sponsor may be subject to the following legal liabilities for his wrong doings or failure to perform his duty properly in providing professional services: (i) He may be ordered to make a rectification, his illegal incomes be confiscated, and be imposed a fine not less than the amount of but not more than five times the business incomes; (ii) If the circumstances are serious, his business permission may be suspended or cancelled; (iii) The person in charge may be given a disciplinary warning and fined for not less than RMB 30,000 yuan but not more than RMB 300,000 yuan. If the circumstances are serious, the person in charge may be disqualified.