The Research On The Supervision Of The Equity Crowdfunding In China

As the development of internet technology,internet banking develops rapidly in recent years.Equity crowdfunding build a bridge of the supply and need of capital between innovatively small and micro enterprises and small investors by using the high efficiency and low cost of internet as an important means of internet financing,and it has supported the entrepreneurship and development of many innovatively small and medium enterprises by using capital from many small investors.Equity crowdfunding industry of our country has achieved a rapid development since 2013,but a number of risk factors resulted from the lack of relevant laws and regulations and regulatory lag and other factors restricted the long term and stable development of China’s industry of Equity crowdfunding.Therefore,the regulatory problem of Equity crowdfunding has become more and more prominent.Firstly,this paper introduces the background and reasons of the financing difficulties of start-up enterprises in China’s current economic situation and compares the three main financing mode of Internet banking and this paper focuses on the important significance of the healthy development of the financing mode of equity crowdfunding to the current economic and industrial transformation in China.Secondly,this paper explains the financing process of equity crowdfunding and it is development as well as the comparison of the three profit model of the platform of crowdfunding.Thirdly,this paper study the legal risk,the operation risk of the platform and the credit risk faced by fundraisers and the platform as well as the financial risks faced by investors,and also it analyzes the present situation of the legal supervision of crowdfunding and the problems faced by crowdfunding.Finally,this paper elaborates on the Jobs Act raised by the USA for the industry of crowdfunding and the regulatory rules developed by the Securities and Exchange Commission,wishing to find a program to help the regulation of the industry of crowdfunding in China.I put forward five reform proposals to improve the long-term stability of China’s industry of equity crowdfunding in combination with the legal and regulatory status of domestic and foreign industry of equity crowdfunding.