Regulation of Equity Crowdfunding in China

Abstract

Equity crowdfunding is a novel concept of using the strength of the Internet to raise business capital through the “crowd” and it is being developed well in China Backed by government, entities and investors. Considering equity crowdfunding involves great risk, China has laid down some rules to regulate it in order to protect investors. Through the method of empirical analysis, the article analyzes the risks contained in equity crowdfunding and the deficiencies of China’s regulatory rules. At the end of the article, puts forward some suggestions to improve the level of equity crowdfunding regulation based on above analysis. The main purpose of this paper is to research how perfect the regulatory rules to protect investors who are interesting in equity crowdfunding and promote the healthy development of it in China.