A people's market of Hong Kong: Facilitating crowdfunding of SMEs
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AbstractThis chapter proposes a regulatory framework for the introduction of equity crowdfunding into the Hong Kong financial framework. Part II examines the state of SME financing in Hong Kong and shows that a significant gap exists between the availability of and need for start-up equity financing. This gap affects companies too large to be funded by personal assets of the founder, her friends or family, but too small to attract venture capital. Such companies are of a size well served by equity crowdfunding. Part III then turns to a review of crowdfunding regulation in the US, the UK, Singapore and China, showing different stages of development and regulatory techniques. Part IV surveys the early data on the economic impact of crowdfunding in those same jurisdictions. Part V presents our proposals for Hong Kong: (i) crowdfunding should be restricted to issuers organized under Hong Kong law, (ii) a class exemption from the prospectus requirement should be created for those companies offering shares through a licensed crowdfunding platform, provided that they publish all annual disclosures required under the Hong Kong Companies Ordinance for the AGMs of public unlisted companies, and (iii) a condition for licensing of crowdfunding platforms should be that it receive declarations from investors that they have will not invest more than 10% of their annual income on the relevant equity offering, including any crowdfunding investments they have made during the preceding twelve months.
All Author(s) ListDonald D.C., Mok G., Fong A.
All Editor(s) Listed. by Jiaxiang Hu, Matthias Vanhullebusch, Andrew Harding.
Detailed descriptioned. by Jiaxiang Hu, Matthias Vanhullebusch, Andrew Harding.
Pages220 - 260
LanguagesEnglish-United Kingdom
KeywordsCorporate finance, Crowdfunding, Funding start-ups, Hong Kong, Venture capital

Last updated on 2021-20-09 at 23:25