Research On The Supervision Of Equity-based Crowd-funding In China

Equity-based crowd-funding,as a variant of Internet finance,because of its "small amount","mass" and other characteristics,is deeply loved by countries,and is considered to be a key to solve the financing problems of start-up companies.Since its introduction into China in 2011,equity crowd-funding has taken root in the rapid development momentum,widely absorbed private capital,greatly expanded the financing channels for small and micro enterprises,and enriched the multi-level system of China's capital market.However,at the current stage,China's equity crowd-funding supervision system is still far from perfect.Legislation laws such as the Securities Law are lagging behind.Specific rules of restricted crowd-funding have not yet been introduced.The lack of supervision has severely restricted the development of equity crowd-funding.The 18 th National Congress of the Communist Party of China called for the transformation of financial supervision into the daily work of the government,and handled the relationship between market self-regulation and government supervision.The Nineteenth National Congress further pointed out that it is necessary to deepen the reform of the financial supervision system,promote the multi-level development of the market economy,improve the financial supervision system and speed up the pace of transformation.Under the dual pressures of national policies and realistic needs,it is imperative to improve our country's equity crowd-funding supervision system.In 2015,the China Securities Regulatory Commission issued the “ Circular on Specific Inspection of Institutions Conducting Equity Financing through the Internet ”,which clarifies the idea that China divides equity crowd-funding into two forms of public offering and private placement,and monitors them separately.Since there are all kinds of private equity crowd-funding in the market,public equity has almost no development in China.Therefore,this paper uses private equity crowd-funding as the research object and is called equity crowd-funding in the following.This article first investigated the development and supervision status of equity crowd-funding in China,and analyzed the existing problems in its regulatory legislation,administrative enforcement,industry self-regulation and investor rights relief,and borrowed the regulatory experience of developed countries to try to suggest how to improve the crowd-funding supervision system to achieve effective supervision of equity crowd-funding and create a healthy industry development environment.This article has five parts.In the introduction,the author first introduced the research significance of this article,combed the relevant theories of the academic circles to form a research review,and summarized the innovations and deficiencies of this article.The second part is the definition of equity crowd-funding and the theoretical basis of supervision.It elaborates on the definition and operation mode of equity crowd-funding,the difference with other financing methods,and the development process of regulatory theory.And then it expounds the regulatory necessity of equity crowd-funding from the perspective of complicated legal relationship and many risks.The third part mainly introduces the quo and existing problems of China's equity crowd-funding supervision.Through analyzing the current regulatory policies and analyzing the trial process of the first case of equity crowd-funding,it finds that the problems existing in the regulatory system include inadequate legislation and that administrative supervision mechanism is not clear,industry self-regulation is insufficient,and investors' rights are difficult to remedy.The fourth part studies and analyzes the supervisory policies of the four developed countries in the United States,Britain,South Korea and Italy,and hopes to extract from them reference points for improving China's regulatory system.The fifth part is based on the problems existing in supervision,from the four perspectives of legislation,administrative enforcement,industry self-discipline,and judicial remedy,and puts forward suggestions for improving China's equity crowd-funding supervision system.Equity crowd-funding is a new thing.It is an innovation that adapts to the development of the times and integrates the Internet and finance.It has great potential for development.But precisely because of its "new",it also brings a lot of risks and problems.It must take appropriate supervision to ensure that its development does not deviate from the track.