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Research On Equity Crowdfunding Regulation

Posted on:2016-10-29Degree:MasterType:Thesis
Country:ChinaCandidate:F H LiangFull Text:PDF
GTID:2296330461468417Subject:Economic Law
Abstract/Summary:PDF Full Text Request
Crowdfunding has a long history. With the help of the Internet, it was given a new meaning. It has the property of "crowd wisdom", Crowdfunding, especially the equity crowdfunding, can effectively resolve the difficult financing problem of SMEs (small medium enterprises). In recent years, it has developed rapidly around the world and has been given the expectation of becoming a new channel for SMEs and start-ups to raise capital. SMEs are not only weak in terms of capital but also in urgent need of legal services. So to establish an effective regulatory regime as soon as possible is essential in maintaining financial innovation. The party and government, driven by the transition to the new normal regulation of the capital market development, demand regulatory restructuring, transform government functions and handle the relationship between government and the market. Crowdfunding regulatory supervision will be the touchstone of this transformation. In Dec.2014, Securities Association of China issued Regulation of Private Equity Crowdfunding (tentative) (draft), which is still being consulted. Definitely, it is right time to explore all the chips supervision with a very far-reaching practical significance. Guided by the missions and requirements from the regulatory transformation, this paper will combine the characteristics of equity crowdfunding and innovative means of supervision through the Internet, and learnexperiences from foreign countries, inorder to raise recommendations to the equity crowdfunding regulation and market cultivation.The main body of this article is divided into four chapters. The first chapter introduces the basic concept of the crowdfunding regulation, including its meaning, reasons for the rapid development, the differences between the equity crowdfunding and security regulation, and points out that the subject of this article limits to the equity crowdfunding. Then it introduces the financial regulatory transformation and the challenges we face, explaining the regulatory trend in which we should conduct the regulation.The second chapter introduces the regulatory objectives, standards and regulatory direction, highlighting all the principles needed to be followed to achieve effective supervision on crowdfunding.The third chapter compares and evaluates the crowdfunding regulatory scheme inChina and the United States. The first sector describes the US legal system, examining the provisions of three specific aspects in the United States. Interestingly, through in-depth study we can find regulations of crowdfunding in US are also highly controversial. The second sector introduces the latest Regulation of Private Equity Crowdfunding (tentative) (draft), including the whole regulatory framework and three main examples which are the investor protection, the waiver system and crowdfunding platforms. Then the article uses the tools and standards mentioned in the second chapter to analyze these rules. The third sector identifies the different local circumstances and summarizes the experiences we can learn from US.Therefore Chapter four raises proposals to establish our own regulation system, on the basis of combining our specific situation, current transformation background and innovative tools such as the Internet. In addition, regulating the crowdfunding itself is not enough. It cannot grow up healthily on the non-fertile soil. So the article also puts forward relevant proposals for its market basis and legal foundation-private placement system.
Keywords/Search Tags:Equity Crowdfunding, Chinese Financial Regulatory Transformation, Internet Finance, Regulatory Legal System
PDF Full Text Request
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