Legal Analysis On The Equity-based Crowdfunding In China

In the two sessions of this year, the “Internet +” was first written into the Government Work Report, which is become part of the national strategy. “Internet +” is to combine the traditional industries and IT to reduce transaction costs in the economy and improve efficiency. And the equity-based crowdfunding was born in the concept of “Internet + Finance”. “Internet + Finance” through Internet technology, improve financing efficiency and reduce financing costs in the course of the currency in circulation, in order to achieve efficient allocation of monetary resources. Therefore equity-based crowdfunding as an innovative model of Internet finance plays an important role in the promotion of minor enterprise as well as the building of the multi-level capital market.At the same time, under the balance of efficiency and safety. “Internet +” improve the efficiency of financing, but also brought security issues of investor protection. Especially in the framework of current law, the existence of the number of shareholders and the illegal fund-raising squeeze the growth of equity-based crowfunding. It can only be issued by the way of private placement, which can not reflect its feature. So the equity-based crowdfunding has a profound impact on our traditional financing system and financial law.In this paper, we studies on the legal relations subject, object(mainly financing behavior) and content of equity-based crowdfunding, in order to clarify its legal structure. Compared by P2 P, PE and the regional equity trading center, and then we can locate its position in the multi-level capital market. Through the analyzed in the framework of current law, equity-base crowdfunding faces some problems like the existence of the number of shareholders and the illegal fund-raising. In this paper we also points out that there are still legal risks in our country and lack of growth in the legal environment. Finally, in the system build process, we subject to combined with national conditions, use of the private placement firstly. And then rely on the regional equity trading center to achieve the public offering. At last realize the full "disintermediation" in the form of public offering. And in the regulatory level are relatively start with the self-regulatory organization, and then the local government finance system regulate the platform through the regional equity trading center. Finally modify the Securities Law to exemption the equity-base crowdfunding. Through the qualified investors, specifications and financial platform to bring it into the legalization track.