China to regulate online equity financing platforms
Beijing - XINHUA
China's securities regulator will soon start an inspection of online equity financing platforms to address risks brought by illegal activities and let the platforms better serve the real economy.
The China Securities Regulatory Commission (CSRC) will oversee several kinds of online platforms, including equity-based crowdfunding, which allows investors to receive a stake in the company funded by pooling money from many people via the Internet, said Deng Ge, spokesman for the CSRC, at a press conference Friday.
The inspection will focus on several aspects, including whether the online fund raisers have promoted themselves publicly, whether the accumulated number of equity holders has exceeded 200, and whether the raisers have collected private equity funds in the name of equity-based crowdfunding, Deng said.