Research On The Legal System Of Equity Crowdfunding In China

Equity crowdfunding refers to issuer transfer a percentage of equity in order to acquire development fund in the early stage of company, investors through the financing model of the investment to become the shareholders of a company. As a new means of financing, equity crowdfunding can help miniature enterprise financing and provide new investment channels for the public, so it get the favor of people increasingly, it have been booming since birth. But due to lack of regulation, equity crowdfunding still have many legal problems, such as, The risk of fraud, illegal absorbing public deposits, illegal securities, lack of effective exit mechanism, ect. So Chinese equity crowdfunding regulatory shall be in absorbing the foreign advanced experience, on the basis of regulatory innovation, protect investors and to encourage the financing efficiency of the basic principles. Establish the regulatory which conforms to China national conditions, make it more standardized, rationalization to provide service for start-ups, complete the construction of multi-level capital market in our country and develop the substantial economy.