The legal nature of the advance compensation in the securities market is more inclined to the legal agency settlement system. As the main body of the advance compensation, the sponsor institution bears the liability for compensation externally and enjoys the right of claim internally. The existing advance compensation mechanism has problems such as unclear compensation standards, opaque and unfair compensation procedures, unclear starting point, and unclear relationship with the issuer's administrative reconsideration administrative litigation. There are not many related research results. In the future mechanism construction process, the amount of compensation should consider market risk factors, clarify the legal concept of the advance compensation mechanism, handle the relationship between advance compensation and administrative reconsideration, administrative litigation and administrative compensation, and introduce solutions such as the hearing system.

Zong Yu, Fan Yamin. Legal Research on the Construction of Advance Compensation Mechanism in China's Securities Market. International Journal of Frontiers in Sociology (2023), Vol. 5, Issue 5: 19-27. https://doi.org/10.25236/IJFS.2023.050503.

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