Research On The System Of Investor Protection In The Online Non-Public Equity Financing

The object of this paper is the protection of investors in non-public equity financing in China.As a representative of China's financial innovation,online non-public equity financing was entrusted to ease the dilemma of micro enterprises and small start-ups,and it was developed rapidly in recent years.However,behind this development,the high risk of the Internet non-public equity financing and the lack of investor protection system caused by regulatory lag make the investor protection in this area become a serious problem,and thus become a major obstacle for the healthy development of the industry.Therefore,in the face of many difficulties in the investors' rights and interests protection,it is of great practical significance to study the construction and improvement of the investor protection system in the online non-public equity financing.For this purpose,this article starts from the concept of the online non-public equity financing,compared to equity crowd-funding,in order to form an accurate and comprehensive understanding of the online non-public equity financing.Based on this,then this paper analyzes the necessity of investor protection in Internet non-public equity financing and the dilemma it faces,uses the state legislative practice from the outside and the practice about the investor protection in the field of self-discipline in domestic industry for reference,and finally puts forward relevant suggestions to establish and perfect the investor protection system in China's online non-public equity financing.In addition to the introduction and conclusion,this paper consists of four following parts:The first part is an overview of the online non-public equity financing.This part firstly introduces the connotation of the concept of online non-public equity financing;secondly,through analyzing the participants of the online non-public equity financing and the offering patterns,to introduce the realistic operation mode of the online non-public equity financing;finally,according to the confusion in previous researches and practices between the Internet non-public equity financing and equity crowd-funding,this part makes a systematic analysis of the difference between the two,laying a foundation to follow the unique system value and the operation logic of the online non-public equity financing in the construction of investor protection system.The second part is about the necessity of the protection of investors in the online non-public equity financing and its system dilemma.Firstly,this part demonstrates the necessity of investor protection in the online non-public equity financing from two aspects:One is the current group of investors is not qualified and need the legislative intervention to protect it.The other is the qualified investors still need legal protection in view of the economic considerations of system construction,the imbalance of the rights and obligations and the risk of illegal in current situation.Secondly,it describes the system dilemma of investor protection in this field,which can be embodied in three aspects: the lack of special supervision system,the structural imbalance of investor protection system and the imperfect of the supporting system.The third part is the practices of investor protection in the online non-public equity financing.This section not only examines the legislative practice of the investor protection in the United States,but also take "master" and "36 krypton" as examples,systematically reviewing the experiences in constructing investor protection system in this field in domestic industry.On this basis,this part criticizes and draw lessons from the domestic and foreign experiences of practice and puts forward the relevant enlightenment.The fourth part is suggestions to establish and improve the investor protection system in the online non-public equity financing.At first,we sort out the principles of system construction and improvement as following:The first is balance should be taken between the investor protection and the promotion of capital market development;The second is the forces should joint between government regulation and industry self-regulation.Then,this part puts forward specific suggestions to establish and perfect the system as following:Establish the threshold of credit investor,moderate release the publicity ban,standardize the disclosure of information,moderate regulate the financing platform for investment and lead investor,and establish the "bad actors disqualification" system.