Recently, it has been reported that the China Securities Regulatory Commission (CSRC) is considering to adopt a regulation for securities crowdfunding. CSRC recognized the potential of this financial innovation to facilitate access to capital to micro-businesses and SMEs and it is looking forward to “promote the sound and regulated development of the equity crowdfunding industry, protect the lawful interests of investors, prevent financial risks, and highlight the role of the financial industry in serving the real economy”.
This announcement is a big step for the Chinese emerging crowdfunding industry, although no deadline or further details have been specified by CSRC. If a regulation for securities crowdfunding will be pushed through in such a huge market, allowing everyone to invest in chinese businesses, the forecasted $25 billion in 2025 for the Chinese crowdfunding market do not seem anymore just a possibility.
Things are moving relatively fast for crowdfunding around the world, but if you add to this the speed with which China has changed and grown over the last decade, it might well be that the Chinese Republic will beat many countries, adopting soon regulations for securities crowdfunding.
Alois, JD (2014). China Securities Regulatory Commission Reviewing Crowdfunding. Crowdfund Insider.
Giles, C. (2014). China poised to pass US as world’s leading economic power this year. FT.comImage credit to: Dennis Jarvis http://bit.ly/1yOSWqh
Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives.
During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem.