The Risk Analysis Of RenRenTou Platform Equity-based Crowd-funding

Over the years,China’s small micro-enterprises are facing financing difficulties and financing expensive problems.And equity-based crowdfunding has the characteristics of being open,small and popular.The emergence of equity-based crowdfunding broadens the financing channels for enterprises for those who cannot rely on traditional financing channels to obtain funds to bring new hope.At the same time,equity-based crowdfunding also promote the development of China’s financial system to multi-level and deep.Therefore,the emergence and development of equity-based crowdfunding have been widely concerned by the society.In 2016 the national “two sessions” at the beginning,Premier Li Keqiang in the government work report “2016 key work” in the focus on creating a public,crowdsourcing,public support,all the platform.In the country’s strong advocacy,the Chinese equity-based crowdfunding industry will be another opportunity to upgrade.By the end of February 2016,according to incomplete statistics,the country’s various types of public platform for a total of more than 300,non-public equity financing platform is the most,about 128.As a new financing model,equity-based crowdfunding has its obvious advantages.But the process of equity-based crowdfunding is complex,there are many risks.If the lack of effective management and supervision,it will harm the interests of investors,and even restrict the development of the public shareholding,undermine the stability of China’s financial system.Therefore,it is very important to improve the management and supervision level of the operation mechanism of the equity system.In this paper,the analysis method is mainly taken case analysis and literature research.The research object of this paper is "RenRenTou" equity-based crowdfunding.It has achieved excellent results many times in equity-based crowdfunging.It is a typical representative of the industry.Through the country’s first case of RenRenTou and NuoMiDuo found that China’s current equity industry has a lot of risks.Through the analysis of all publicly available information and data of investment,the paper describes the business model and operation process.This paper expounds RenRenTou equity-based crowdfunding risk from its internal and external two aspects.Its internal risks include the risk of wind control and the operational risk of the platform.And its external risks include risk of regulatory policy,credit system and actual shareholder rights.Finally,the paper puts forward the corresponding improvement suggestions for the platform operation mechanism.At the same time,this article also made some suggestions on the regulatory strategy of the supervisory authority.The regulatory authorities need to find a balance between regulatory and investor protection to provide a favorable environment for equity ownership.In general,the equity-based crowdfunding is an important part of the financial system.Equity-based crowdfunding in China’s development is also facing a lot of risks.while encouraging the development of equity,the government should actively guard against risks and promote the health of equity-based crowdfunding developing and stabilize China ’s financial system.