Research On Legal Protection Of Equity Crowdfunding Investors’ Rights And Interests In China

Equity crowdfunding refers to the activity of public small equity financing through the Internet.As an important way for direct financing of small,medium and micro enterprises,the proposal of equity crowdfunding has made it possible for all people to participate in innovation and entrepreneurship,but at present China’s real equity Crowdfunding is still in the midst of preparations for pilot projects.The Internet non-public equity financing market,once known as private equity crowdfunding,is also languishing.In addition to stricter regulations and inherent business risks,the legal rights of investors in the field are difficult.Obtaining comprehensive and effective protection is also an important reason for regulatory authorities to treat it with caution and investors to wait and see.This article focuses on the legal protection of investors’ legitimate rights and interests in equity crowdfunding,with a view to improving the relevant systems to protect their legitimate rights and interests,so that they can really dare to invest,while laying a solid foundation for the sound development of the equity crowdfunding market.In the context of the difficulty of financing small and medium-sized enterprises and the drive of the "double innovation" era,equity crowdfunding as an important supplement to the existing capital market has its necessity.However,at present,China does not have specific regulations on equity crowdfunding at the legal level.It exists only in documents such as the "Guiding Opinions on Promoting the Healthy Development of Internet Finance"(hereinafter referred to as the "Guiding Opinions")issued by the central bank and other ten departments.Roughly introduced,its public financing characteristics make it extremely easy to touch the legal red lines such as illegal absorption of public deposits,public issuance of securities,and referring to the relevant legal regulations and practices of non-public equity financing on the Internet,there are certain problems in investor protection.In contrast,the extraterritorial equity crowdfunding market,which is typically represented by the United States,the United Kingdom,and Italy,has relevant laws and regulations to protect equity crowdfunding investors,such as the US investment limit rules and UK investor access restrictions.Italy’s leading investment system has its own characteristics and is worth studying in China.China can learn from practice and extraterritorial experience and adopt the method of protecting equity crowdfunding investors in stages.In the admission stage,different degrees of restrictions are set on the participation of various participatingentities;in the investment operation stage,a crowdfunding platform is given.Review,information disclosure,anti-fraud and other duties,set up a lead investment system,and protect the investment amount through firewall rules;in the exit stage,set up a cooling-off period exit system,and through the repurchase,listing exit and build a secondary market for equity crowdfunding Other methods to ensure that investors can leave the market in an orderly manner;in other related aspects related to investor protection,personal information security is guaranteed,and the whole process is supervised,and in the context of improving the existing dispute resolution mechanism,the Internet features of crowdfunding for equity Introduce a new type of dispute resolution mechanism,so that investors can get relief quickly,efficiently and fairly in the event of a dispute.