On The Construction Of Supervision System Of Public Financing In Our Country

Since 2012, China’s Internet finance has entered a rapid development period. All kinds of Internet finance models are gradually emerging. After nearly three years’ development, China’s Internet finance has established an financial system that includes third-party payment, P2 P, crowdfunding, big data finance, information finance institutions, and Internet finance portals, which effectively improve the problems that traditional finance exists, like information asymmetry, lower market efficiency, lack of investment methods and other issues.In recent years, driven by the relaxed policy environment and huge market demand, crowdfunding is experiencing a process of rapid growth. Zero One Finance data shows that by the end of 2014, there have been totally 127 crowdfunding financing platforms, such as Zhongchouwang, Dajiatou, Qingjuzhongchou,Jingdongzhongchou, Baiduzhongchou and so on. However, in the process of crowdfunding development, due to the restrictions and absence of laws and institutions, failure in the patterns of innovation, confidential crisis of information leakage, and financial issues such as the long tail risk, some of the crowdfunding platform have carried on transformation, and even the phenomenon to stop operating.Therefore,based on the all kinds of problems exposed in the development of crowdfunding, in order to standardize the development of the crowdfunding and protect the interests of inventors, we need to introduce in regulation.This thesis firstly defines and analyses the concept of Internet finance and crowdfunding. Internet finance is a financial format or a financial service model which fully penetrates the “open, equality, cooperation, sharing” spirits of the Internet into the traditional finance sector by relying on mobile payments, cloud computing,social networking and search engines and other advanced information technologies.Crowdfunding is a new kind of financing model in internet finance, from which financiers show their products or ideas in order to obtain the necessary funding and finally return to investors in the form of material objects, interests or stock equity.Among them, the pattern that returns to investors in the form of interests is P2 P network loan. It has spun off from crowdfunding and gradually developed into a larger Internet financial model. Consequently, the research subjects of this thesis are only the stock equity crowdfunding and the commodity crowdfunding, excluding theP2 P network loan. Then, the thesis analyzes the particularity of the regulation of the crowdfunding, the risk of laws and system, risk of patterns security, risk of information security, the long tail risk and so on. These are the reason of regulatory particularity of crowdfunding. From the analysis of the development of the crowdfunding and the current situation of supervision, the thesis holds that there still exist many problems and defects in the process of the supervision on crowdfunding.For example, the absence of the crowdfunding laws and supporting regulations; the uncertainty of regulatory body, object and scope; the deficiency of risk monitoring,early warning, handling mechanism; improper coordination among the regulatory authorities and insufficient execution; the absence of the industry self-regulation organization system and self-discipline standard;insufficiency of media supervision on market participants and regulator’s regulatory action and the lack of independence.Aiming at the problems existing in China’s crowdfunding, the author thinks we need to build a supervision system that includes legal supervision, administrative supervision, industry self-regulation and media supervision. As to how to effectively build the supervision system of the crowdfunding, on the basis of drawing supervision lessons from the international, the author suggests: firstly, strengthen the foundation of legislation, law work, formulate and improve the legal system of finance supporting regulations, making the internet industry laws; secondly, clear regulatory body and its regulatory competence, establish the financing risk monitoring, early warning and emergency handling mechanism, and strengthen cross-sect, cross-regional coordination and supervision; thirdly, accelerate the construction of crowdfunding industry self regulatory organization system, develop self-regulation specification, and strengthen the ability of coordination,protection,supervision of self-regulation organizations in the industry; fourthly, improve the regulations and laws of media supervision, and enhance the independence of the media.