Study On Legal Regulation On Market Exit Of Equity Crowdfunding Platform In China

Internet finance is booming and equity crowdfunding is rising.Equity crowdfunding platforms provide equity crowdfunding services,with lower cost and higher efficiency,for star-ups and small enterprises,and at the same time,provide open accesses to equity investments,through online platforms,for all of the small investors.Given its characteristics,which are open,small and public,equity crowdfunding is facing potential risks on failure of investment projects and capital loss of investors in the market,which might cause financial risk,on one hand.On the other hand,a huge amount of investors,who have lost money,might gather as an irrational power and make troubles on social order.At present,regulations on equity crowdfunding platforms by the government tend to be heavy,while there are still no national rules published by the government,specifically rules on market exit of the equity crowdfunding platforms.In fact,the concentrated outbreak of risks are most likely to happen in the period when platforms are exiting the market.Situations,which are accumulation of financial risks,tightening of regulatory rules and the lack of a unified system of rules on market exit,have made market exit of the platforms a blank with urgent requirement for legislation.As a result,market exit of the equity crowdfunding platform requires the intervention and regulation by the government.The first part of this thesis mainly introduces the development of equity crowdfunding in China and analyzes the particularity of the platform in terms of nature in law,business activities and market exit.Meanwhile,this part raises the problems of financial risks and capital loss of investors,caused by a large number of platforms exiting the market illegally.Therefore,legal regulation on market exit of the platforms is of great important.The second part mainly analyzes the existing problems on legal regulation on market exit of the platforms,including the lack of legal system and procedures of market exit of platforms,the lack of exit approaches for investors of investment projects on platforms,the lack of guarantee for the safety of investors' capital and personal information.The third part focuses on the core issues of market exit of platforms in China and studies the relevant legal systems of the United States,the United Kingdom,the European Union and Japan on market exit of financial institutions,supervisions of equity crowdfunding platforms,and the protection of investors' capital and information.As a result,we can learn from these legal systems and apply them to the practice of legal regulation in China.The fourth part systematically explains the significance of legislation on market exit of crowdfunding platforms in China.To fulfil it,legislators shall establish and improve the exit procedures of crowdfunding platforms,diversify the approaches on exiting the investment projects for investors,enhance the protection system of investors' capital and set up the safeguarding system for the investors' information.