Research On Legal System Of Supervision On Equity Crowdfunding In China

As the internet is integrated deeper and deeper with different walks of life with the development and innovation of mutual benefit network,“Mutual Benefit Internet plus” has become a major model when it comes to the transformation of China's economic innovation and development.Internet finance is,namely,the internet plus finance.As a component of the internet finance,equity crowdfunding is emerging and thriving rapidly in the country.It is causing greater attention of small and micro-sized businesses with its convenience,effectiveness and low cost in financing,through which these businesses can effectively solve their problems of difficulty and high expense in financing.Thereby,investment channels can be broadened for investors and market can be enriched in equity investment.AngelCrunch,the first platform for equity crowdfunding in China,is an angel investment of this kind providing initiators with venture services in early stage.On AngelCrunch,initiators submit their entrepreneurship projects online.After they are assessed by the platform,these projects will be published on it to attract certified investors once approvals are given.A case in point is that DiDi Taxi Service successfully obtained equity crowdfunding on AngelCrunch.At its primary stage of emergence,DiDi gained financing of 15 million Yuan on this platform before its rapid growth.In short,by way of network connecting network,equity crowdfunding raises funds from the public for certain projects,and then offers equity as return.Such new financing model is different from traditional ones,so there will be snags existing in terms of risk prevention and supervision though it's rather convenient for financing.Currently,the immature crowdfunding market in the country poses inadequacy of legal system of supervision and restraint from traditionally financial regulation to equity crowdfunding.Therefore,to realize further development for equity crowdfunding,we should establish a legal system of supervision on it.That being said,equity crowdfunding should be made legitimate and integrated into the system of equity financing in our country,and thus perfection can be made for multilevel capitalmarket.In this paper,by studying general theory on equity crowdfunding,the author defines its concept and legal attribute as well as puts forward the value goal for its legal system of supervision along with the principle needed to be followed in law enforcement.On this basis,by analyzing the history,current situation and existing problems of the legal system of supervision on equity crowdfunding,the author confirms some defects and gap in this system.According to this,the author draws experiences from home and abroad to forge a sound legal system of supervision on equity crowdfunding in China.This paper is divided into five parts:In the first part,this paper clarifies the unique value functions of equity crowdfunding through defining the connotation of it,which can distinguishes the relationship between it and similar concepts,and analyzes the legal nature of equity crowdfunding,which can serve as the basis for the establishment of legal system of supervision.Next,it discusses the substantive connotation and necessity of supervision on equity crowdfunding,and then clarifies the value goals of the legal system of it as well the significant concepts that should be followed,laying a theoretical foundation for the design of supervision system.In the second part,this paper reviews and analyzes the development history of legal system of supervision on equity crowdfunding and the present situation of current system in China,making the development process of legal system of supervision on equity crowdfunding clearer.In the third part,on the basis of analyzing and summarizing the history and present situation of the legal system of supervision on equity crowdfunding,this paper sums up the existing problems in the legal system of supervision on equity crowdfunding,mainly including the imperfect supervision law,the missing issuance system,the defective legal provisions of supervisory subject,the incomplete legal provisions of supervisory model and content,as well as the missing legal liability on supervision.In the fourth part,compared with our country,this paper introduces the legal system of supervision on equity crowdfunding in foreign equity crowdfunding market with mature development and perfect legal system of supervision,and then it summarizes some institutional measures which have referential significance for the legal system of supervision on equity crowdfunding in our country.In the fifth part,on the basis of summarizing the legal system of supervision on domesticequity crowdfunding,this paper defines the basic principles and designs the framework system of the legal system of supervision on equity crowdfunding in our country through combining with the mature supervision system in foreign countries,and discusses the amendment of securities law,the formulation of detailed supervisory provisions and self-discipline rule at the macro level,and then perfects legal provisions on several aspects of the division and coordination on the responsibility of supervisory subject,the supervision mode,the supervision content and the supervisory legal responsibility from a specific level.In the course of study,literature analysis method,logical analysis method,qualitative analysis method and comparative analysis method have been used for arguing and analyzing the relevant contents in order to make reasonable viewpoints,adequate arguments,clear methods,rigorous logic and accurate conclusions.