Research On The Legal Issues Of The Equity Crowdfunding Financing In China

China's equity crowdfunding industry began to flourish since 2011 at a fast speed that attracted regulators' highly attention. During the National People's Congressand the Chinese Political Consultative Conference and in the work reports of the State Council, equity financing, carrying out pilot equity crowdfunding and encouraging public entrepreneurship and innovation have become top priorities, providing policy support for the development of equity crowdfunding. Equity crowdfunding, as a part of multi-tiered capital markets, facilitates the financing of small- and medium-sized enterprises, but a country should focus on latent financial and legal risks in this process while encouraging development. Therefore, this paper introduces the concept, characteristics and participants of crowdfunding through deliberating crowdfunding, and based on this, discusses legal natures and relations of crowdfunding and deficiencies in current regulatory laws and regulations. It conducts in-depth analysis on latent legal risks of equity crowdfunding model and institutional difficulties facing the system development so as to explore the value and foundation of establishing supervision legal system for equity crowdfunding. In addition, it concludes some problems in need of attention in national supervision legal system for equity crowdfunding through introducing the development background of foreign typical equity crowdfunding and its supervision legal system. While learning the advanced models in foreign countries, it proposes principles, values and objectives for equity crowdfunding supervision legal system. It also provides suggestions for establishing specific systems aiming to regulate the development of equity crowdfunding industry in China.