Research On The Legal Issues Of Protecting The Investors Of Equity-based Crowdfunding In China

As a new type of financing model,equity-based crowdfunding has attracted a large number of investors for its "open,petty and public".Under the background of "mass entrepreneurship and innovation",it has boomed and provides an effective financing method for middle and small-sized enterprises.However,contradicting with the rapid development of equity-based crowdfunding,there is still a lack of institutional norm to regulate equity-based crowdfunding,and it also fails to solve a series of problems arising from the rapid development of equity-based crowdfunding under the existing legal framework.Among them,the protection of investors is the core issue of establishing legal system of equity-based crowdfunding,and it is also a realistic problem which should be solved urgently.As the basic element of the capital market,investors,without a complete and scientific investor protection system,will inevitably affect the healthy development of equity-based crowdfunding.The further development of equity-based crowdfunding should take investor protection as the starting point and foothold.Therefore,the research on the legal issue of protection of equity-based crowdfunding investors becomes more and more important.In this article,interdisciplinary theory research method,empirical analysis method and comparative analysis Method have been used.In order to make the essay more logical,it bases on the basic concept and characteristics of equity-based crowdfunding and investors are involved in legal relationships and the investor protection theory.From the perspective of theory,the author combined with cases to analysis the problems of equity-based crowdfunding investors in practice.These issues include poor risk control ability,vulnerability to fraud,the equity liquidity difference,Investors' relief mechanism is not sound and so on.In view of the current status of China's equity-based crowdfunding investors protection,this article bases on the localization development of equity-based crowdfunding in China,It also draws lessons from the advanced legal system of extraterritorial in the United States,Britain and Germany,adheres to the principle of balance between efficiency and safety,and puts forward suggestions on the protection of investors.This paper also clears the nature of equity-based crowdfunding;improves the rules of investor suitability;Improve platform admittance standards;develops Investor withdrawal mechanism;makes the mechanism of diversified dispute settlement ofequity-based crowdfunding better and Improves the network arbitration system.Starting from all aspects of equity-based crowdfunding,all-round investor protection system is set up to safeguard the legitimate rights and interests of investors so as to promote the healthy development of equity crowdfunding.