Research On The Development Of Chinese Equity-based Crowdfunding

As one of the ITFIN models,equity-based crowdfunding has been gradually developing a scale through continuous exploration of and among questioning from various social communities and individuals,while more and more crowdfunding platforms are established to provide convenient financing channels as well as innovative investment options for investment and financing parties.For the sound development in China’s equity-based crowdfunding,laws and regulations have been formulated and consummated progressively to guarantee the benefits of all parties involved.2015 was credited as the initial year of “equity crowdfunding”.According to relevant statistics,E-commerce was the best platform for equity-based crowdfunding in China with JD.com,Taobao and Suning ranking the top three,and other internet companies heading into this field one by one.This article intends to find out possible problems in China’s equity-based crowdfunding and provide suggestions accordingly via a case study on the development of DJ Finance(dj.jd.com).The article starts with a background introduction and review of relevant research in China’s equity-based crowdfunding together with an elaboration on the concept of equity crowdfunding and its main components.Then an analysis on the development and innovation of DJ Finance(dj.jd.com)is conducted and some successful projects at the present stage are summarized.Finally,based on the case study of DJ Finance(dj.jd.com),the article generalizes the potential risks in China’s equity-based crowdfunding and makes suggestions accordingly in the light of successful projects and previous research.