On The Dilemma And Outlet Of Legalization Of China 's Stock Ownership

There are many kinds of cognition about Equity-Based Crownfunding in China. We can obtain a better understanding about Equity-Based Crownfunding by the perspective of the comparison with other financing modes. And this passage hold a view that Equity-Based Crownfunding is a financing mode whose initials, small businesses in the form of coporation, obtain financial support from unprofessional investors by the internet agencies of Equity-Based Crownfunding.However, Equity-Based Crownfunding brings various risk of high degree to the market:the issuer is stuck into the plight of corporate governance and facing with the crime of illegal fund-raising; Investors may be harmed by fraud and have no stable and effective legal protection when they are facing the high risk; Rights and obligations of the platform are not clear. The common cause of China’s stake in this pattern can be attributed to this unlegalized pattern in chinese legal system. On the one hand, the result leads to the fact that a lot platforms,without any censor, flood into the market; they are likely to be detonated the market risk in the future, thus affecting the legitimate rights and interests of the broad masses of investors; On the other hand, the lack of a clear system of legal norms leads to current regulatory shortcomings. The former requires that we should legalize the pattern, aming at protecting investment and promoting to raise capital; The latter requires that we should establish a ratioanl regulation system by reformation and innovation.Our country has tried to solve this problem for twice. The first legalized test failed because publicity ban conflicts to the operation principle and the concrete measures are uneffective in securing investment. At the same time, it also exposed deficiencies of the regulatory. While the second test chose the path of public offerings, namely "raise funds through Internet channels". Although this decision conforms to the market development needs,this time did not solve the problem mentioned before.Different nations have different understanding of equity-based crownfunding, which leads to their different choices. Britain considers it as unpublic offerings thus taking it into the regulatory system. The United States pass the JOBS Bill,which is an innovation. Therefore, this article argues that our country should be timely formulate laws, supporting the development of equity-based crownfunding.The arrangement should balance the relationship between the protection of investors and promoting the capital formation.And small issue exemption system,which is compatible with the development ofequity-based crownfunding, accords with the current essence of equity-based crownfunding.In addition, to balance the relationship between the protection of investors and promoting the capital formation, the concrete system should pay attention to the market. First of all, to prevent fraud risk, the initials shall bear the obligation of information disclosure while obtaining funds, the financing project information by stages, hierarchical should be showed to potential investment group and investors; Second, limited-investors standard, draw from American JOBS act,willprotect the investors who have different risk-bearing ability;Finally, the nature of the platform and the corresponding rights and obligations require establishing the qualification licensing system for,establishing and strengthening theobligations of platform.