Research On The Protection Mechanism Of Equity Crowdfunding Investors In China

After the reform of commercial registration system in China, a large number of small and medium-sized companies are emerging for preferential policies. Therefore,financing is one of the key which restricted the development of them. The equity crowdfunding began to known by the public since 2014 and it changed the traditional modes of financing from banks or other financing channels. The equity crowdfunding is a new thing, and there is no regulations for it in our country. Therefore, the equity crowdfunding investor protection needs to be studied deeply.This paper is divided into four chapters to express the protection of equity crowdfunding investor in China. Firstly, the author introduces the basics of equity crowdfunding briefly, and then describes crowdfunding investment types, so as to sort out the legal relationships.The second chapter mainly describes the equity crowdfunding legal risk. There are two main legal issues of equity crowdfunding, one is the legal Status of equity crowdfunding, and the other is the conflict with current laws and regulations.The third chapter collected overseas equity crowdfunding investor protection legislation, including US, Britain, France, Japan, Italy, Australia, Canada and so on.Compared with the development of the domestic equity crowdfunding, the author concludes the regulatory inspiration on equity crowdfunding.The fourth chapter is the key sections of this paper, after completing the basics and legal risks of equity crowdfunding, the author believes equity crowdfunding investor need to be protected urgently by legislation. Among them, legislation focus on fund raising, rights and obligations, investor protection, tax incentives, credit construction,exit channels, cooling-off period, risk compensation and so on.