Research On Legal Issues Of Internet Equity Crowdfunding In China

Internet equity crowdfunding is a new financing model relying on Internet platform,which Start-up project fundraisers publish Fundraising project by means of Internet equity crowdfunding platform,and qualified investors invest the project to own the company's equity.According to different ways and objects of fundraising,it can be divided into public equity financing and private equity financing,that is Internet non-public equity financing.Its character is openness,small amount,mass,high risk and high return,and it includes the mode of individual direct shareholder and the mode of "leading investment+following investment".Internet equity crowdfunding alleviates the financing difficulties of small and medium-sized enterprises,provides new investment channels for grassroots investors,and leverages idle private funds.After the project of HongLi energy in 36 equity crowdfunding platform's fakement erupted,Internet equity crowdfunding's industry began to enter the regulation of industry.In the trial practice,its character attracted the attention of relevant departments which the characteristics of equity-based crowdfunding,such as large number of people involved in the case,complex civil legal relationship,small amount of subject matter and small number of people involved in the case.Therefore,the establishment of clear and feasible legislation has become the common goal in the theoretical and practical circles.Foreign equity crowdfunding started early,developed fast,and owned to legislative perfection,which provided the possibility of legal transplantation for Chinese equity crowdfunding legislation.The United States,the United Kingdom,Germany,Australia have carried out equity crowdfunding legislation,but the value of choice has its own emphasis.The United States passed the JOBS Act and the regulation of crowdfunding lay emphasis on equity crowdfunding's enrollment and registration exemption,regulation of issuers and clarify the responsibility of crowdfunding's platform.The UK protects the interests of investors through the regulation of crowdfunding.Germany passed the Small Investor Protection Act,and proposed three different financing instruments,namely "anonymous participation","red share" and "bonus loan/subprime loan",to build a new legal relationship.Australia was suitabled to the foundation of the Company Law,and passsed Corporations and Advisory Committee Discussion Paper on Crowd Source Equity Funding,which incorporated equity crowdfunding into the scope of supervision.The legislation of the United States,the United Kingdom,Germany and Australia has provided valuable experience for China improving the legislation of Internet equity crowdfunding.The standard of crowdfunding platform's admittance and rights and obligations are indefinite,the standard of investors' access and exit mechanisms are not perfect,the system of finformation disclosure is imperfect,and the system of credit's information is imperfect,which has hindered the development of China's Internet equity crowdfunding.It's vital that improving the Internet equity crowdfunding law,clarifying the standard of crowdfunding platform's admittance and rights and obligations,improving the standard of investors' access and exit mechanisms,improving the system of finformation disclosure,and improving the system of credit's information.It has advantage of resticting the equity market supervision,increase the penalty of breach of contract,highlight the protection of investors' rights and interests;help regulate the order of the equity crowdfunding market,stabilize the financial market,and promote the development of inclusive finance.