Research On The Legal Regulation Of Chinese Equity Crowdfunding

Equity crowdfunding is a emerging financing mode which is based on the internet crowdfunding platform.That is a mode which the financiers show investors preparing established enterprise or project information with the help of the internet crowdfunding platform,attract willingness of investors to join investment,and feedback investors in the form of equity.It solutes the small and micro businesses and start-ups financing problem effectively,and promotes the formation of a multi-level capital market.Affected by the world trend,the equity of domestic the crowdfunding platform also arises at the historic moment and rapid development momentum from 2013.But,the development of Equity Crowdfunding in domestic still in a start and exploration stage and lack of a operation patter on which is relatively mature and risk can be controlled.Meanwhile,due to the lack of comprehensive industry self-regulations and government regulations,there are no regulations specification the development of the industry,and also face hitting the existing laws and regulationes at any time.The author analyzed the main body,operation process and operation situation of current of Equity Crowdfunding,and summarizes some existing risks in the development of industry,such as platform operating model risk,legal risk,investors risk and so on.To some extent,these potential risks will restrict the healthy development of domestic Crowdfunding Market.According to the analysis of <The Private Equity Crowdfunding Management Practices>,the current relevant egulation thinking and industry operation mode still exist many shortages and unable to effectively avoid potential legal risk,investors risk and operational risk.Based on this,with the analyze of crowfunding’s running statue,the main body and operation process,found that the investors,project sponsors,and crowdfunding platform facing many sorts of legal risk and the risk of moral hazard.On the basis of the success of the regulation experience of Britain,the United States,Italy and other countries,in the perspective of regulation,the auther suggests to strengthen the information disclosure financiers,set different threshold of market access,build the financial credit system,set up and improve the exit mechanism,establish the system of small saving issue,stake in the raised platform system of registration,set up the crowdfunding funds managed system,to expecting further improve the system of the equity of our country and the Equity Crowdfunding.