On The Legal Orientation And Supervision Of The All - Round Mode Of Chinese Equity

Equity crowdfunding is one sort of crowdfunding modes,in which the projectinitiators raise funds via the Internet by providing their backers finance in the form ofequity. As a newly developed fanancing mode in recent years,its scale and influence hasbeen expanding in several counties and regions of the world.Equity crowdfunding inChina has a considerable scale comparing to other countries,but the relevant legislationand legal research are still missing. Without a legal definition and regulation,Equitycrowdfunding in China now faces a huge leagl risk.In order to promote its healthydevelopment,this issue analyses the legal orientation of equity crowdfunding inChina,and put forward the corresponding suggestion of supervision on the basis offormer analysis.There are four parts in this issue:The first part introduces the concept and characteristics both of crowdfunding andequity crowdfunding.The second part introduces and analyses the legal status of equity crowdfunding bothin American and China.First, relevant laws in American are introduced,which refers tothe JOBS act and regulations made by SEC. Second,the generalization of the legal risksof equity crowdfunding in China is made.The third part analyses the legal orientation of equity crowdfunding in China.Theanalysis is launched by four questions followed:Is the equity a sort of securities?Itbelongs to public offering or private placement?Is there some differences betweenequity crowdfunding and other private placements?Is there a violation against the law ofillegal fund-raising.Finally comes the conclusion of the legal orientation of equitycrowdfunding in China.The fourth part throws out some suggestions on the supervision of equitycrowdfunding in China.These suggestions,which are made on the basis of formeranalysis and the actual conditions of Chinese securities regulation, are devided into fourparts which contains the qualification of equity crowdfunding platform,the definition ofinvestors,the rules during business operation and legal liabilities.