A Comparative Study On The Legal Supervision System Of Sino-US “Equity-based Crowdfunding”

A new round of Internet banking reform has kicked off. After Beijing, Shanghai, Shenzhen have suspended the registration of P2 P lending platformand the National Equity Exchange and Quotation(Neeq)has suspended the special class financial enterprise including P2 P lending platform to list or back-door list as well.That’s mean Neeq plans to suspend P2 P lending platform floating on the stock market in all ways.Because of this, the development of P2 P in domestic goes to be cool gradually. In this state, investors and financiers begin to pay more attention to the another area of crowdfunding——“Equity-based Crowdfunding”.Equity-based Crowdfunding is the new rising financing model of Internet crowdfunding, in which the project initiators raise funds via the Internet by providing their backers finance in the form of equity. Since Equity-based Crowdfundingwas born in America in 2011, this new type of financing model quickly spread throughout the world. Chinese Equity-based Crowdfunding developed very fast in this two years even nearly catching up with America and England. In one side,it’s benefit from the development of Chinese Internet technology, in the other side, it’s driven by the demand of Chinese financing market.But it’s different since America has the JOBS Act and England has some relevant law about Equity-based Crowdfunding,China is lack of relevant supervision law. It must make development of Chinese Equity-based Crowdfunding seriously uncertainty, companies in this industry, investors and financiers are also facing the huge legal risks. Therefore, this issue analyses the legal concept and characteristics of Equity-based Crowdfunding, combined with the America and England practice of legislation, to explore the available suggestion of supervision system.There are five parts to discuss Equity-based Crowdfunding:The first part introduces the concept, model and characteristics of Equity-based Crowdfunding. Firstly introducing the other three models of Crowdfunding in order to make distinction from Equity-based Crowdfunding. Secondly, on the basis of foregoing, introducing the concept, model and characteristics of Equity-based Crowdfunding.The second part mainly introduces the global and Chinese development of Equity-based Crowdfunding industry at present, especially deeply researching the domestic development, proposing thepotential legal risks at the same time.The third part introduces domestic legislative and regulatory dynamics about Equity-based Crowdfunding firstly, then mainly proposing some opinions about the “Regulation of Financing by Equity-based Crowdfunding of Private Equity”(Draft) which released by Securities Association of China.The forth part introduces the newest legislation of Equity-based Crowdfunding in America. Especially JOBS Act and Regulatory Rules drafted by Securities and Exchange Commission. Try to find out the advanced design system for Chinese Equity-based Crowdfunding.The fifth part analysis the comparison above, summarizing which kind of regulation we need to establish in the current situation. Including the exemption of Equity-based Crowdfunding, the system of accredited investors and professionalization of lead investors.