Research On Legal Protection Of Equity-based Crowdfunding Investors In China

Equity crowdfunding as an innovative model of internet finance is of great significance to improving the financing efficiency of SMEs.However,equity crowdfunding has developed late in China and lacks corresponding practical experience.Without the soundness of the system,it does not benefit the maintenance of investor rights and interests.By sorting out the related regulatory rules for equity crowdfunding in recent years,it can be found that in the current regulatory context,equity crowdfunding specifically refers to non-public equity financing of the Internet,and its supervisory authority is the China Securities Regulatory Commission.These rules also roughly define the responsibilities of platforms and financiers in equity crowdfunding in investor legal protection.The risks faced by equity crowdfunded investors are divided into the risk of equity crowdfunding's own legitimacy,the fraud risks faced by investors,the risks caused by the unsound exit mechanism,and the risks caused by stockholding on Chinese-style equity crowdfunding.Identifying the risks faced by investors can more specifically design a system to protect the legitimate rights and interests of investors.The experience of foreign equity crowdfunding legislation is also very useful for reference.The “JOBS Act” in the United States created a registration exemption for small-scale issuance and allowed it to openly raise funds for eligible investors.Financing regulation is another important system of foreign equity crowdfunding legislation,including the prohibition of publicity and the disclosure of financing information.When making suggestions on the protection of equity crowdfunding investors in China,the local investor protection plan is mainly constructed from the legal positioning of equity crowdfunding,the obligations of the platform,the regulation of financing behavior,and the requirements of investors themselves.Among them,combined with the existing development practice of China's equity crowdfunding,it is proposed that the mandatory provisions for giving investors the right to withdraw from the investment agreement,so as to more effectively protect the investor's right to withdraw.The institutional design of legal protection of equity crowdfunded investors should be run through the various entities.From the appropriate management of investors,the regulation of financing behaviors to the obligations of the equity crowdfunding platform,only the protection of each link will be protected.