On Legal Regulation Of Equity Crowdfunding

Equity crowdfunding has swept the whole country since introduced to China,for its low financing costs,easy entrance,wide popularity as well as some other advantages.In around 2014 or 2015,it peaked and became a hottest new industry.In recent two years,however,equity crowdfunding trapped in difficulties and was shrinking gradually.Although there are many possible reasons,including macroeconomic depression,lax screening of platforms,immature investors and so on,the prime cause should be incomplete legislation for equity crowdfunding and invalid legal guidelines.This article concentrates on the essence of equity crowdfunding,explore its current situation in China and some legal problems at first,and then comes up with some suggestions to complete equity crowdfunding legislation based on some foreign legal rules as well as Chinese situations.Those suggestions are hoped to help equity crowdfunding recover and develop effectively in our country.In this article,equity crowdfunding legislation is analyzed through the following five parts:The first part: Equity Crowdfunding Summary.Firstly,connotation and extension of equity crowdfunding are briefed.Then,its characteristics are analyzed.Finally,its development values and significance are stated.The second part: Development Situation and Existing Legal Problems of Equity Crowdfunding in China.This part mainly sketches operation patterns,profit patterns,development situations,and public attitudes of equity crowdfunding in China,and then analyzes potential legal problems faced by all participators.The third part: Foreign Equity Crowdfunding legislation and Rationality Analysis of Such Reference and Application in China.In this part,relevant legislation experiences in the US,British and Japan are used for reference.Feasibility analysis is performed to localize those experiences.Then enlightenment for China is got.The forth part: Giving Suggestions for Completing Equity Crowdfunding Legislationin China.Suggestions are proposed to complete our equity crowdfunding legislation on legalizing crowdfunding modes,normalizing crowdfunding platforms,publishing financiers,regulating investor risks,and completing relative rules.