The Study Of Chinese Equity Crowdfunding System

Crowdfunding originated in the United States, is a new form of micro-finance, which aggregates many funds of small investors to fund the development of start-up enterprises or small businesses. In the age of the Internet, relying on Internet technology to build crowdfunding platform, Crowdfunding makes the Internet, entrepreneurship and investment closely together. Thus a new type of crowdfunding model is formed-----equity crowdfunding. The advantages of equity crowdfunding are obvious. Under the existing financial system, there is an embarrassing phenomenon. A significant number of the people holding deposit investment but they cannot invest However, at the same time,the much-needed start-ups companies and middle and small-sized enterprises are unable to obtain adequate development funding from banks and securities market because they cannot provide strong guarantees for their weakness.In order to increase the vitality of the market, improve market competitiveness,we need to break such an awkward situation, and equity crowdfunding is precisely born for this.Nevertheless, as the general new things, its development is not smooth.There is a fierce collision between equity crowdfunding and traditional financial regulatory system.This article mainly discussed how to make it legalized under the traditional financial regulatory system by avoiding the risk of fraud, protecting the interests of investors and reducing the cost of regulation.The paper is divided into four parts.The first part is to expound the concept of equity crowdfunding, the characteristics of equity crowdfunding and the pattern of classification.First, the passage combines domestic and foreign literature to introduce the concept of equity crowdfunding. Secondly, based on the introduction of the concept, it further discusses equity crowdfunding features. Finally, it expounds the current worldwide equity crowdfunding common patterns.The second part is the introduction of foreign equity crowdfunding regulatory system, which launched from the United States, Japan and Britain those three countries. It focuses on the American jobs bill, Japan’s WG report, and the British crowdfunding supervision and management measures.The third part illustrates the Chinese equity crowdfunding legal position, the development status and the existing regulatory situation. Among them, the legal position is divided into three parts to expand, it demonstrates whether Chinese equity crowdfunding belongs to securities, whether belongs to the issuance of securities, and whether it belongs to the public demonstrate development.The fourth part is the most important part. It based on the mentioned three parts of our existing crowdfunding regulatory approaches, then identifies problems and learns from foreign regulators, and finally returned to China’s national conditions to come up with the solutions of problems. At last I give my own advices in four aspects, they are the regulatory guide, the exemption system, the regulatory mode and investor protection.