Research On Legal Issues Concerning Development Of Equity Crowdfunding In China

As a new part of the Internet financial market,the equity crowdfunding has broken the traditional financing way,becoming a new channel to solve the financing problem of small and micro businesses.After the equity crowdfunding appeared in China,its development speed and scale cannot be ingored.But there are the following problems like the risks of public offering of securities illegally and so on.One Reason for the formation of these problems is the development path of equity crowdfunding on Securities law is not clear.The other reason is the operating mode of equity crowdfunding which is from the practice has some disadvantages itself.So,how to find out a right way to develop equity crowdfunding in China?That is the problem this paper attempts to solve.This paper did not choose the point of view that making up for a lack of legal regulation system for equity crowdfunding in our country.Because the equity crowdfunding is born from practice,but not theory,and it is not the lack of legal regulation system which creates the disadvantages of equity crowdfunding.What's more,it is the reasons above lead to the lack of legal regulation system for equity crowdfunding.This paper did not choose to reference the foreign experiences directly either.The reason is equity crowdfunding in the other countries belongs to the public offering.Reference foreign experiences means accepting this idea certainly.There is a lack of theoretical basis.Therefore,this paper studied the development path of equity crowdfunding on Securities law first of all,making a thorough research on the equity crowdfunding's unique characteristics of the Internet,the related requirements of offering securities and so on.From the perspectives of legal texts and the securities law theory,this paper concluded that equity crowdfunding in our country should trace the way of private offering.This is different from most of the research thought of public offering.Then,aiming at the existing defects of equity crowdfunding's operating modes,this paper designed equity crowdfunding's operating path of trust.Through comparative study,it was proven that equity crowdfunding's operating path of trust has more advantages than representative shareholding or the establishment of a limited partnership.This new path is able to get a better legal relationship between lead investors and following investors,and raise new impetus for the further development of China's equity crowdfunding.