Study On Risks And Supervision Of Equity Crowd-Funding In China

In 2011,equity-based crowdfunding was entering China,as a new type of financing model,which can help small and medium-sized enterprises finance in a convenient and cheap way.In recent years,the number of equity-based crowdfunding websites and the scale of financing have been growing rapidly.In 2015,7532 projects were financed at equity-based crowdfunding websites,and raised fund about 5.19 billion.Nowadays,equity-based crowdfunding is under the supervision of government,but the legitimacy of this financing model has not yet definitely confirmed at the legal level,and there is no specified rules and regulations to monitor and supervise the financing model.Therefore,it is necessary to strengthen the research on related problems of equity-based crowdfunding,in order to grasp the industry development trends and problems,and put forward relevant policy recommendations for government reference.Based on studies of experiments and theories made by overseas and domestic scholars,the paper analyzed the risks and problems of equity-based crowdfunding industry in China,and raised related policy recommendation on equity-based crowdfunding in reference to the supervisory experience in the global mature market.Recommendations as follows:Firstly,revise Company Law and Securities Law and other related laws,exempt from the relevant laws which limits the practicability of equity-based crowdfunding,establish corresponding regulation rules to make sure that the development of equity-based crowdfunding industry has laws and regulations to abide by;Secondly,set up the equity-based crowdfunding association,establish the industry regulatory framework which combines the administrative supervision and self-discipline;Thirdly,as for the problems in equity-based crowdfunding market such as funds security,information asymmetry,moral hazard,it is proposed to set up the regulations respectively especially for equity-based crowdfunding websites,financiers and investors.