Study On Legal Regulation System Of Chinese Equity Crowdfunding

Crowdfunding refers to via the Internet platform to raise fund from a large number of individuals or organizations to support projects, enterprises or personal financial.Equity crowdfunding is one sort of crowdfunding modes, in which the project initiators raise funds via the Internet by providing their backers equity, and post their projects, financing needs on the website, then registered investors will subscribe for shares to support the development of projects or enterprises. Investors hold the shares of the company according to the proportion of capital contribution until the end of the project, and share project gains or bear losses.As a new financing model, equity crowdfunding has a great significance to broaden direct financing channels for small and medium enterprises, to support the development of real economy and improve the multi-level capital market system. It has got rapid development and high attention from social focus since launching. In recent years, equity crowdfunding has been flourishing in China. However, relevant legal obstacles and retardation of legislation, especially the imperfect of legal supervision system, results in enormous legal risks and investor protection problems during its establishment and operational process, thus hinders the development of equity crowdfunding.Perfect system supply is the basis and guarantee to the healthy and orderly development of equity crowdfunding. On one hand, it needs to break the legal restrictions to achieve legal compliance, therefore we need to pass legislation to make equity crowdfunding develop healthily and smoothly;on the other hand, the operational process of equity crowdfunding involves the balance of interests, not only shall we consider the interests of initiators, but also pay attention to the protection of investors,so we need to establish reasonable and effective supervision rules. To advance and realize the standardized development of equity crowdfunding, perfecting the legal supervision mechanism is necessary and important, which has a vital significance to promote employment, enterprises finance and economy.This paper introduces the general theory of equity crowdfunding, discusses its need for supervision and analyzes the Chinese and American legal regulatory system of equity crowdfunding. This paper also makes some advice to perfect the legal regulatory system of equity crowdfunding in our country,which will be useful to the legislationand future research of equity crowdfunding.The content of the paper is divided into five parts, as follows:The first part: Introduction of the topic, literature review and research methods.The second part: An overview of crowdfunding and equity crowdfunding. This part defines the concept and types of crowdfunding, and analyzes the characteristics, value,operation process and legal nature of equity crowdfunding.The third part: Analyzes the current situations of Chinese legal regulatory about equity crowdfunding, mainly focuses on the aspect of legal risks and investor protection problems during its establishment and operational process, puts forward the necessity and institutional composition of regulation in our country.The fourth part: Analyzes the equity crowdfunding law in U.S. and China, then presents some proposals for perfecting Chinese legal regulatory system.The fifth part: Conclusion. Summarizes the content of the paper and points out the deficiency existing in the paper.