The People’s Funding of China: Legal Developments of Equity Crowdfunding — Progress, Proposals, and Prospects

Abstract

With the world’s second-largest economy at an average of nine percent gross domestic product (GDP) growth rate over the past two decades and a rapidly growing domestic market for new products and services supported by its 1.3 billion population, it is no surprise that China continues to be one of most popular investment destinations for private equity and venture capital firms from all over the world. Following the worldwide trend of cherishing innovative, internet-based capital-raising and microfinance, crowdfunding has emerged as an indispensable approach to enlarge investments to fuel the torpid Chinese capital market.

Keywords: Crowd-funding, China, CSRC, fund-raising