Legal Obstacles And System Construction Of Equity Crowdfunding In China

With the extensive use of network technologies such as big data and artificial intelligence,financing methods are no longer limited to traditional methods.Equity crowdfunding raises funds to the public through the Internet.The core is to directly finance in the scope of securities issuance.Investors will idle funds.The crowdfunding platform supplies issuers with urgently needed funds and gets a certain profit.Although the crowdfunding platform provides a platform for investors and issuers to communicate directly,investors are likely to generate reverse risk before financing and moral hazard after financing because of information asymmetry.In addition,equity crowdfunding still needs to be in China.The "Securities Law" regulates the law.The law has strict compulsory information disclosure system,securities intermediary agency supervision and anti-fraud system.It has the purpose of protecting investors' rights and interests to a certain extent.However,due to the excessive disclosure of a series of systems such as information disclosure.The burden of people is not conducive to the development of small and medium-sized enterprises with equity crowdfunding in China.Regarding private equity crowdfunding,the China Securities Industry Association has only issued a management draft for comments,and has not promulgated relevant laws and regulations.The definition of equity crowdfunding is excluded by legislation.The application of private equity crowdfunding,in addition,public fundraising itself has many problems,the US public fundraising exemption is similar to the small exemption in the traditional securities law,which uses investment limits to control investor risk,but because of information The threshold for disclosure procedures is low,the risk identification ability of public investors is weak,and the quality issuer tends to In the private placement method to find qualified investors,the public equity crowdfunding has become a “casino” full of risk hazards in the natural market competition.As far as the status quo is concerned,the public fundraising system is not implemented in China,and private equitycrowdfunding regulations are also Imperfect,we should let the market freely choose within the legal framework under the attitude of encouraging innovation,so as to find a way for crowdfunding that suits China's current situation.This paper intends to introduce several models of crowdfunding from the rise and development of crowdfunding,and summarizes the definition and characteristics of equity crowdfunding and the basic theory of equity crowdfunding development,expounds the development of equity crowdfunding in China and faces The development obstacles are analyzed one by one.While drawing on the foreign equity crowdfunding system,the Chinese equity crowdfunding system is proposed and solved.