Studies On Financing Models Of Securities-based Crowdfunding At The Basis Of NEEQ

The establishment of National Equities Exchange and Quotations(NEEQ)aims to widen the financing channels for Small and Medium Enterprises(SMEs),and help them to solve the problem of financing difficulties and high expenses.It provides SMEs a new channel to complement capital and a step further of improving the multi-level capital market system in China.However,due to NEEQ mechanism is still in the testing stage,it is influenced by the violent fluctuation of the main board market,so the problem of NEEQ's liquidity is becoming more and more prominent,and then SMEs' financing situation is still not optimistic.The advent of Securities-based Crowdfunding has changed the traditional financing concept.It bridges NEEQ companies(including listed and will-be listed)and investors through the internet equity investment and financing platform.It not only broaden of SMEs' financing models,but also provide investors' more choices.It is really worthy to study the subject of utilizing new financing tool such as private equity crowd funding to help SMEs solve the financing difficulties on the precondition of obeying the laws.Firstly,the paper analyses and compares the recent years' data of NEEQ.It points out the limitation of SME's direct financing and the problems it causes.Secondly,the paper sums up the main financing models that links private equity crowd funding with NEEQ,and analyzes the major risks that the industry faces by referring the legislation system and running models of Securities-based Crowdfunding in the U.S.,Europe and Taiwan district,along with the case study of Zhongtoubang,a domestic Securities-based Crowdfunding platform.At the same time,the paper suggests that improving the private security financing model which is based on the form of limited partnership,facilitate companies on NEEQ to get financing on capital market.Thirdly,the writer puts that China should speed up the legislation construction of the Securities-based Crowdfunding,clear and definite its legal status and scope,increase protection on investors,and guide the internet platform of private equity investment and financing to give full play as an intermediary agent.Through the research,the writer hopes policy makers can better understand the practical demand of development of private Securities-based Crowdfunding market.The paper also proposed suggestions about business management and risk control for the internet equity investment and financing platform in order to enhance the continuous improvement of China's capital market system.