Image Gradient
BOP Consulting Logo | HomeButton
Crowdfunding China
image gradient

Image Credit: Denys Nevozhai

Download Project Report

VIEW PDF

Crowdfunding China

Positive Words From The Chinese Government


China will promote greater use of equity crowdfunding for startups to encourage entrepreneurship in the world’s second-largest economy reported by Dominique Patton and Kathy Chen.


Up until now China has refrained from showing enthusiastic support for crowdfunding. BOP Associate Director, Conor Roche based in Shanghai explains, “A lack of clarity and a fear of reprimands from what might have been considered illegal activity has stalled development of equity crowdfunding in China. That appears to be about to change.”


Patton and Chen reveal a State Council document posted on the governments website called for expanding Chinese equity crowdfunding projects to help small companies raise funds as a “useful complement” to traditional equity financing while highlight the need to protect investors’ right and minimize financial risks.


China Equity Crowdfunding Regulations Published

Reports have highlighted some of the risks of the unregulated market. In January 2015, the CSRC (China Securities Regulator Commission) and Securities of China (SAC) published draft regulations for equity crowdfunding in China.


Cook explains “The draft regulations indicate that the Chinese government intend to establish an accredited investor model of equity crowdfunding similar to that found in the US. It’s not quite the crowd but allowing the growing middle and wealthy classes to invest is certainly a step forward.”


Under China’s proposed rules, an equity crowdfunding platform would have to be a Chinese company or partnership with a local firm, have net assets of about £500,000 and register with the SAC. It must carry out due diligence on investors and the companies seeking finance.

Investors would have to invest at least £100,000 in a single project to be able to participate.


ShareIn Aims for a Slice of the Chinese Market

With most Chinese banks unwilling to fund startups, crowdfunding has already seen rapid growth. With over 30 crowdfunding sites already operating in China, World Bank research suggests Chinese crowdfunding could be a $50 billion industry by 2025, accounting for half of the developing world’s crowdfunding.


ShareIn co-founder and chief executive Jude Cook said, “this is fantastic news for crowdfunding and we believe it will really open up financial trade routes between the UK and China. This is perfectly timed for us to maximise on the huge market opportunity there.”


BOP is currently working in partnership with ShareIn to build the first equity crowdfunding solution for the combined Chinese and UK markets.


The unauthorised English translation of the draft regulations can be found here on the BOP website. The original document in Chinese can be downloaded here.


This blog was originally posted on the ShareIn website who are our partners in this initiative.

China To Boost Equity Crowdfunding

China will promote greater use of equity crowdfunding

Oct 4, 2015

Green Cities helping climate change through culture and sustainability

Nov 4, 2021

How are major cities around the world responding to climate change through cultural policies and programmes?

The Green World Cities of Tomorrow: Culture and Sustainability

Paul Owens

Culture and the Climate Emergency

Apr 22, 2021

5 Priorities for World Cities in the post-covid recovery period

Culture and the Climate Emergency

Paul Owens

Culture and the Recovery: Levelling Up Culture?

Dec 4, 2020

Culture can play an important role in recovery and renewal across the UK, if the right local decision-making is put in place

Culture and the Recovery: Levelling Up Culture?

Callum Lee

Central London’s celebrated

Sep 23, 2020

This focused, coordinated set of measures can not only rescue the sector, but position it to lead the recovery

Central London’s celebrated cultural offer is in peril

Jonathan Todd

COVID-19: Government support packages for culture and creative industries #3

Aug 21, 2020

Three big questions as applications close for Arts Council England’s Cultural Recovery Fund

COVID-19: Government support packages for culture and creative industries #3

Paul Owens

COVID-19: Government support packages for culture and creative industries #2

Jul 30, 2020

The UK’s £1.57 billion recovery package: priorities for a New Deal

COVID-19: Government support packages for culture and creative industries #2

Paul Owens

COVID-19: Cities, Culture and the 3 ‘P’s: powers, partnerships, place

Jul 20, 2020

Cities are using their unique capabilities to lead recovery and renewal

COVID-19: Cities, Culture and the 3 ‘P’s: powers, partnerships, place

Paul Owens

COVID-19: Government support packages for culture and creative industries #1

Jul 7, 2020

Investing in recovery, planning for transformation

COVID-19: Government support packages for culture and creative industries #1

Paul Owens

COVID-19 is a triple blow to culture and the creative industries

Jun 30, 2020

Recovery and renewal will depend on how we address the three dimensions of the crisis

COVID-19 is a triple blow to culture and the creative industries

Paul Owens

Take planning and collaboration to whole a new level.

Jun 3, 2020

In the face of radical uncertainty leaders and policy-makers will have to take planning and collaboration to whole a new level

‘Plans are useless, planning is essential’

Paul Owens

Relief, Recovery and Renewal

May 13, 2020

Nobody knows what will happen next, but we have a good idea of the three necessary steps out of the crisis

Relief, Recovery and Renewal: navigating our way to a new kind of future

Paul Owens

The Golden Thread in the 2020s

Dec 20, 2019

A cause for optimism

Weaving the Golden Thread into the 2020s

Paul Owens

Related Articles

By BOP Consulting

Planning a new project?

If you are interested to learn more about our work or if you have a project you would like to discuss, get in touch.

SHARE ARTICLE