On The Legal Regulation Of Equity Crowdfunding In China

Equity crowdfunding is one of the most noticeable among crowdfunding.As a new financing model,it has the advantages of low financing costs,low thresholds and wide audiences.Its creation eases the financing difficulties of small,medium and micro enterprises,and broadens the investment channels of the general public,and has a great effect on the integration of social idle funds.Therefore,equity crowdfunding came into being with the development of the Internet economy.However,equity crowdfunding has many problems from its inception,the most typical problem is the legitimacy of its financing methods.Chinese law strictly prohibits companies from illegally issuing shares to unspecified objects,and the typical financing method of equity crowdfunding can easily touch this illegal red line.Subject to this problem,equity crowdfunding has gradually declined after experiencing a brief climax in China,and even It's difficult to survive.The inherent problem in the development of equity crowdfunding lies in the fact that China's legal regulations are not sound.There is no targeted legal regulation for this financing method that challenges the boundary between traditional "public offering" and "private placement." Although in recent years,relevant national authorities have issued documents to regulate and supervise equity crowdfunding,they have not achieved the expected results,because the currently issued documents cannot constitute a complete regulatory system,and the legal level is low,which severely restricts The healthy development of equity crowdfunding.Although the newly revised "Securities Law" has amended some regulations,equity crowdfunding has not been included in the scope of regulation,and its typical problems have not been properly resolved.Therefore,equity crowdfunding is still a realistic legal issue worth studying.This article uses the methods of historical analysis,empirical analysis and comparative analysis to study the legal issues of equity crowdfunding in China.In addition to the conclusions of the introduction,the full text mainly includes the following four parts:The first part is related to equity crowdfunding.This section defines the concepts and features of equity crowdfunding,briefly analyzes the operating model of equity crowdfunding,and briefly describes the subjects and mutual legal relationships involved in equity crowdfunding.The second part is the current status and problems of the legal regulation of equity crowdfunding in China.This part first expounds the current situation of the development of equity crowdfunding in China,and then draws out the current status of legal regulations,finds the problems existing in it,and separately raises questions for the three parties involved in equity crowdfunding.The interests of the financier conflict with the current legal provisions,and intellectual property rights are easily violated;investors have the risk of fraud in equity crowdfunding,the right to information is easily violated,and the dispute resolution mechanism is not perfect;the rights and obligations of the equity crowdfunding platform are divided Unknown,the management system of financing funds is not perfect,and the illegal risk of platform operation is high.By asking questions,we have established goals for the improvement of the legal system for equity crowdfunding in China.The third part is the legal reference for the US and British equity crowdfunding.This section mainly introduces and analyzes the legal requirements for equity crowdfunding in the United States and the United Kingdom,absorbs advanced experience,and implements different regulations for investors,financiers,and equity crowdfunding platforms.Based on national conditions,the more advanced system And measures to localize the transformation and explain the enlightenment derived from it.The fourth part is the suggestions for improving China's equity crowdfunding laws and regulations.Based on the problems of the three parties involved in equity crowdfunding,this part proposes the following suggestions based on the absorption of foreign advanced experience: improve the legislative system of equity crowdfunding in China,formulate special legal documents,and modify existing legal provisions;Strengthen the supervision of financiers,strictly distinguish qualifications according to the principle of appropriateness,formulate reasonable financing limits,and formulate equity freezing mechanisms and information disclosure mechanisms;for equity crowdfunding platforms,improve their access systems and information disclosure mechanisms,and clarify their legal status and Rights and obligations,and the establishment of a fund custody system;for investors,improve the entryand exit mechanism,establish a reasonable investment ceiling,and improve the dispute resolution mechanism.