Research On Legal Problems Of Investors’ Interest Protection In Equity Crowdfunding

The increasing popularity of equity crowdfunding has injected fresh blood into our country’s internet-based financial market,which is an inevitable outcome of the continuous development of China’s multi-level capital market.Compared with the traditional financial market,equity crowdfunding has many advantages such as easy access to entry,broad investor group,lack of upper and lower level of investment intermediary,convenient trading and so on.Equity crowdfunding allows financiers to showcase their projects on a crowdfunding platform,and they can use their own characteristics to attract the attention of investors,thereby obtaining financing and resolving the lack of corporate project capital.Studying the relevant legal issues of equity crowdfunding can not only obtain capital for the majority of companies,but also make use of the idle capital of investors,and this is a mutually beneficial strategy.Investors have always been the cornerstone of the capital market,but they are often in a weak position compared with financiers.Therefore,the design of a legal system centered on the protection of investors is crucial for the continued development of the financial market.A perfect system is the basis for the development of the capital market and is also the guarantee for the orderly development of the equity crowdfunding system.The current equity crowdfunding is a new product of this era,and the legal system has not been followed up in time,resulting in frequent problems in practice.The purpose of this paper is to explore the legal issues of investor interest protection in equity crowdfunding.And by analyzing the relevant cases of the crowdfunding platform in our country,this paper expounds the shortcomings of investor protection.Therefore,this paper focuses on investor protection and first introduces the basic theory of equity crowdfunding,including the meaning of equity crowdfunding,the main structure and the realization mode of equity crowdfunding.Secondly,this paper analyzes the current situation of investor protection in China’s stock market,and analyzes the current situation of investor protection from three aspects: investors,project sponsors and crowdfunding platforms,and points out some problems.Thirdly,in the third part of the article,we also analyze that which currentregulations between the United States and the United Kingdom in these three levels are used to protect the interests of investors;Finally,combining the experience of foreign countries,it puts forward feasible suggestions on the construction of China’s equity crowdfunding legal system,and in order to help the sustainable development of equity crowdfunding.