The Role Positioning and Reconstruction of the “Gatekeeper” in the Capital Markets of China

The gatekeeper theory is originated from the United States to make securities intermediaries agency more accountable by making them carry out their verification duties with diligence and responsibility. It is hypothesized that the Gatekeeper provides the issuer authentication services. The issuer will be carefully examined, and the accuracy and precision of the issuing documents will be ensured, otherwise severely punished. However, China’s failure to become accustomed to the localization environment during the introduction has resulted in identity positioning conflict with Gatekeeper, poor performance of reputation mechanisms, misallocation of duties and other dilemmas. To address those problems, the securities market commission framework shall be reorganized with the China Securities Regulatory Commission as the principal, the Gatekeeper shall be stripped from its issuer constraints, and a “Whistleblower Report” framework shall be established, a novel framework of reputation intermediary shall be established and the intermediary agency’s reputation information in the application documents and data disclosure system shall be disclosed , and a new framework that applies punishment as the primary measure and encouragement as a supplement shall be created. As a consequence, a new environment of a virtuous cycle in the securities market will be formed.