Reseach On China’s Antirisk Measures For Laws Of Stake Mass

With the development of Internet finance, equity crowd-funding is growing and prosperous in China. The equity crowd-funding in China today is a new financial method for medium and small business, mainly, to raise money from pubic. It means a lot to vibrate financial market, empower medium and small business and promote industrial business, but meanwhile it also produces a series of social problems. It’s necessary for us to analyze comprehensively all the risks existing in the process for the purpose of anti-risks as well as constant healthy development since relevant legal regulations are not perfect yet. Regulatory measures and legislation in China discussed in this article is in the period for of receiving public advice. Therefore we need further discussion for legitimacy, access platform and for the protection of investors. Those in foreign countries are more comprehensive, of which are JOBs in the USA and Rules in the UK. It is good reference for us. This article is to put up advice in legitimation, regulation and credit system by analyzing current legal risks, combined with the US and UK equity crowdfunding legal and practical experience, to prevent all the potential risks at most.Based on this, this article is to discuss our equity crowdfunding legal risks and regulatory issues in three parts.The first part describes the legal risks of equity crowdfunding currently exists, specifically addressed from views of investors, financiers and platforms. Risks facing by investors includes mainly:high entry standards for credible investors, investor fraud, and legal risks to withdraw. For funding, legal risks are relevant to illegal money, business secret explosion and IP. For equity platforms, mainly are illegal release of securities, illegal funding and unclear identification between right and obligation.The second part describes the US JOBS Act and the British "crowdfunding regulatory rules" in the equity crowdfunding relevant legal regulations, as well as other effective legal regulation measures related aspects for our equity crowdfunding legal regulation constructed to provide effective reference.Third part is the focus of this article. Specific recommendations are made from aspects of improvement for legislation, regulation and establishment of market credit system. By enacting new laws, amend the "Securities Act", "private equity crowdfunding financing Management (tentative) (draft)" and other related legal documents, a clear legal status and rights and obligations of equity crowdfunding platform, the establishment of equity crowdfunding waiver system, improve the institution for protection of IR,information disclosure system, set permissions for investors to invest, set up blacklist system, etc. on equity crowdfunding to give proper guidance to ensure the healthy operation of equity crowdfunding market.