The Surprising Liberality of Securities Crowdfunding Regulation in Hong Kong: Insights From a Comparative Analysis

23 Pages Posted: 13 Jul 2020

See all articles by Alexander Loke

Alexander Loke

City University of Hong Kong (CityUHK)

Date Written: March 2020

Abstract

Crowdfunding—the use of the internet and other social media by entrepreneurs to attract funding for their ideas and projects—holds forth the promise of mitigating the funding gap that entrepreneurs face. While regulators in the US, the UK and Singapore have made adjustments to the securities fundraising rules in response to the demand for a reconsideration on how the regulatory system should respond to the potential benefits proffered by crowdfunding, HK has not carried out such an exercise. This article examines whether the current fundraising rules are more restrictive than those found in the reference jurisdictions, and whether further reforms are necessary. The comparative study reveals the surprising liberality of the existing HK regulatory regime, the current regulatory strategies employed by reference jurisdictions to strike a better balance between access to funding and investor protection, and what lessons HK may derive from them.

Suggested Citation

Loke, Alexander, The Surprising Liberality of Securities Crowdfunding Regulation in Hong Kong: Insights From a Comparative Analysis (March 2020). Singapore Journal of Legal Studies, Mar. 2020, pp 242-264, Available at SSRN: https://ssrn.com/abstract=3649902

Alexander Loke (Contact Author)

City University of Hong Kong (CityUHK) ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong

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