Research On The Equity Crowdfunding Investors Protection In China

Internet finance is a new form of finance in contemporary society,and P2 P network loans,the equity crowdfunding which represent the Internet finance are developing rapidly in Chinese market economy.Due to the traditional bank loans,loan companies and private equity investment fund financing and other forms still can not meet the social funding needs,especially for some start-ups,micro,small and medium-sized enterprises.Because of the lack of economic strength,it is difficult for them to obtain bank loans through various forms of security.In addition,to obtain the financing by the micro-credit companies is required to pay a larger loan interest,which is a greater economic burden and investment costs for start-ups and micro,small and medium-sized enterprises.Considering these factors,the Internet equity crowdfunding emerges at a historic moment,fitting the financing needs of start-ups,micro,small and medium-sized enterprises.The laws and regulations of our country on the equity crowdfunding are relatively inadequate.The People's Bank of China,Ministry of Industry and Information Technology and other ten ministries jointly issued the "the guidance about promoting the healthy development of the Internet financial " on July 18,2015,and the guidance,with a global view to the healthy development of Internet financial industry,further promotes financial reform and innovation,and promotes the healthy development of Internet finance.The guidance encourages the development of new forms of finance,defines that the equity crowdfunding is public,petty and popular,and affirms the important position of the equity crowdfunding in the development of multi-level capital market.The State Council is carrying out the "public entrepreneurship,innovation" activities,which provides a policy support for the development of equity crowdfunding.However,in the rapid development of equity crowdfunding,the problem of investor protection has gradually emerged.There has been a lot of untrue financing information revealed,and the legal boundaries between equity crowdfunding and illegal fund-raising are blurred,which easily leads to the emergence of illegal fund-raising behavior.In the whole process of the equity crowdfunding,investors' investment is of vital importance to the development of equity crowdfunding,and the security of capital and the efficiency offinancing are the value orientation that we need to consider.At the same time,we should take the balance of this two kinds of interests into account.Confronted with all these problems,we need to establish and improve the relevant legal system to protect the rights of investors in the equity crowdfunding according to China's specific national conditions.This article will analyze it as follows: how to build the equity crowdfunding investors protection system,such as the investor standards,platform obligations and responsibilities,information disclosure,investment and financing quotas,the circulation platform of crowdfunding equity,supervision and self-discipline.Therefore,this article will do research on the equity crowdfunding investors protection in China from following aspects: the basic theory of the equity crowdfunding investors protection,the present state and existing problems of the equity crowdfunding investors protection,the research on extraterritorial equity crowdfunding investors protection,the legal system construction of the equity crowdfunding investors protection in China.