Lending-based crowdfunding: It is generally considered that crowdlending can be regarded as loan service. Please refer to our reply to section g. for details.
Additional comments regarding the legal situation for crowdfunding, crowdinvesting and crowdlending platforms or what FinTech’s must be aware of in this business area
Currently, Chinese authorities have not issued any laws, regulations or policy documents specifically targeting crowdfunding. Subject to the limited regulation, FinTechs in this area shall be very cautious to carry out their business in China, as it might be easily deemed as “illegal fund-raising activities” and adversely affected by the tightening of the policies.
Economic conditions
Market size for crowdfunding, crowdinvesting and crowdlending platforms and biggest companies in this business area
There are no accurate official statistics on the market size of crowdfunding platforms.
The most well-known donation-based crowdfunding platforms are Waterdrop, Aixin Chou, Qingsong Chou etc. The most famous reward-based crowdfunding platforms are Taobao, JD and Suning. The equity-based crowdfunding platforms have almost disappeared now.
Additional comments regarding the economic situation for crowdfunding, crowdinvesting and crowdlending platforms or what FinTech’s must be aware of in this business area
The development and prosperity of the crowdfunding is closely related to the regulatory attitudes of the Chinese government. Due to the increasing concerns about the illegal fund-raising in recent years, the crowdfunding platforms’ business model has been very popular in China.