Study On Supervision System Of Equity Crowdfunding Platform In China

The equity crowdfunding is a new financing model based on the Internet platform for the public investors.It has the small,open,online,the sale of shares and other characteristics.Equity crowdfunding is more conducive to solve the funding bottlenecks of small micro-enterprises,start-up enterprises in the early stage,and the comparing with the traditional financing way.During the investment and financing activities of equity crowdfunding,the platform provides information exchange,capital transfer and other intermediary services for the sides of investment and financing.It located in the core of the transaction.To promote the healthy development of equity crowdfunding platform,it is an effective means to resolve the contradiction between the abundant private capital and the small and micro enterprises' financing difficulties.As the Chinese equity crowdfunding is still in the early stages,the equity crowdfunding platform are mess,operating way and risk control level vary greatly.The event of damage the investor's interests occurs frequently,which highlights the lagging of equity crowdfunding's legislation and supervision of China.At the end of 2014,the Securities Association of China(SAC)issued a management approach of private equity.It is the first time to make a institutional guidelines at private equity crowdfunding system,and make the regulatory requirements for the form of equity crowdfunding platform's accessing standards,duties,prohibited behavior.However,the equity crowdfunding platform's regulation is crude in the management approach and not formally implemented at the state of comments for various factors.At the same time,the domestic equity crowdfunding industry has also entered a policy bottleneck period,the institutional benefits of Internet innovation have disappeared.Therefore,it is very important to study the foreign supervision's beneficial experience and build the equity crowdfunding's supervision system(especially for the equity crowdfunding's platform)on the basis of Chinese current conditions.After the outbreak of the American subprime mortgage crisis in 2006,the domestic capital market deep into a downturn,and the financing channels of small and medium-sized enterprises became more and more tight.Under the double pressure of external market shrinking and rigid internal system,it was extremely difficult for enterprises to financing through both IPO and non-public way.So the American have passed the Promotion Act of Start-up Enterprise and Enforcement Rules of Equity Crowdfunding and create a special securities financing platform("fund-raising portal")prospectively.At the same time,the legislation stipulates the registration exemption system of platform,which stipulates the institutional unbundled for private equity crowdfunding system.However,due to the reduction of market access threshold,the platform should undertake more stringent obligations,so the legislation stipulates the specific regulatory requirements on the aspects of capital management,internal risk control,investor protection.Although China and America are subordinate to different legal systems,the securities regulations are not the same,the American useful attempt in the aspects of regulatory principles,regulatory ideas,supporting systems will make some reference value for the construction of Chinese equity crowdfunding platform.Now,China is in the climax of the development of Internet financial innovation,go'vernments are strongly supported the Chinese multi-level capital market's construction by financial innovative promote from the State Council to the local,on the aspect of financial supervision thoughts,China also transforms from the prudential supervision to encourage business innovation gradually.However,the construction of Chinese credit system based on the contractual spirit is lagging behind.In addition,there exist a large amount of the immature investors in China.So,China should design the special equity crowdfunding supervision system according to different condition.At 2017,The Securities Law will faced the overhaul after the nearly 10 years interval,so,we should catch this opportunity.Firstly,we should clarity of the equity crowdfunding's legitimate limit through The Securities Law.Secondly,we should assist by the results of regulatory research,and construct the supporting regulatory system from the aspect of equity crowdfunding platform's market access,obligations and the protection of investors.Finally,from the perspective of encouraging financial innovation and risk prevention,we should promote equity crowdfunding platform and the entire industry healthy and orderly development under the protection of all parties' legitimate interests.