Research On The Legal System Of Qualified Investors In Equity Crowdfunding Of China

With the innovation and development of China's Internet technology,equity crowdfunding has sprouted in the market and has grown rapidly.As a new type of internet finance model,equity crowdfunding has the advantages of high efficiency and low cost,can effectively alleviate the current difficulties of financing of small,medium and micro enterprises in China,and open up more investment channels for small and medium investors.It effectively compensated for the high cost of the traditional financing model and strict limitations,attracted a large number of small and medium-sized investors and small,medium and micro enterprises,and stimulated the further development of market financing.At the same time,the lack of relevant supporting mechanisms and the non-standard operation of the market have also caused the phenomenon of the loss of qualified investors to appear repeatedly.Qualified investors are important participants in the equity crowdfunding market.Ensuring the interests of qualified investors in the market is of great significance to the sustainable development of the equity crowdfunding market.In addition to the introduction and conclusion,this article is divided into four parts.The introductory part discusses why to study the legal system of the protection of qualified investors in equity crowdfunding in China.China's equity crowdfunding and qualified investor system are all in the initial stage,and they are not mature enough and perfect.In practice,the phenomenon of loss of qualified investors' interests is not uncommon.Judging from the research status of the Chinese academic community,there are still controversies regarding the definition and protection of qualified investors.Therefore,it is necessary to further study the standards and benefits protection of qualified investors in equity crowdfunding in China.The first part studies the legal definition of eligible crowdfunded investors.First of all,it discusses the controversial issues in this field in China s academic circles.There is a dispute between private equity and public offering in the definition of equity crowdfunding.There are disputes about the investment limit,the number of investors,and the review process in the definition of qualified investors.Secondly,it compares the differences between the definition of qualified investors in China and the United Kingdom and the United States,and finds that the qualified investors in China are over-restricted in terms of funding thresholds,the number of restrictions is too rigid,and there is no clear form of review.Qualified investor funds and the number of restrictions,the rational establishment of investment limits,the introduction of small-sum issue exemption rules and other ways to be improved.The second part discusses the theoretical basis of the legal system for protecting qualified investors in equity crowdfunding,including transaction cost theory,openness,fairness and fairness,and efficiency and security.The theory of transaction cost requires the protection of qualified investors' access to information in transactions and emphasizes the principle of honesty between entities.The principle of openness,fairness,and fairness emphasizes the right to know and respects the equal treatment of qualified investors in order to achieve fairness and justice.As a goal,the principle of efficiency and safety requires efficiency and safety to be taken into account in the equity crowdfunding market,and the current protection gaps for qualified investors should be improved.The third part analyzes the defects of China's equity crowdfunded qualified investor protection legal system.Generally speaking,there are also the following problems:lack of credit system in the securities market,unreasonable access conditions for the equity crowdfunding platform and financing parties,and unclear information disclosure requirements.In the absence of third-party custody regulations,QFIIs are unable to effectively participate in corporate governance and lack reasonable exit rules.The fourth section puts forward suggestions for the improvement of the legal system for the protection of qualified investors in equity crowdfunding in China.In view of the defects in the legal system of qualified investor protection for equity crowdfunding in China,it is proposed to build an equity crowdfunding credit evaluation system and standardize equity crowdfunding related entities.Conditions for access,clearing the main body of information disclosure and its responsibilities,adding third-party fund custody rules,strengthening the participation of qualified investors in corporate governance,and improving the ways for eligible investors to exit the equity crowdfunding rules strengthen the protection of China's equity crowdfunded qualified investors.