crowdfunding industry in China

The purpose of this work is to provide empirical evidence about the crowdfunding industry in China and the peculiarities of the crowdfunding platforms operated. China is the largest economy in Asia-Pacific area and one of the most important in the world. With a GDP of over USD 8 trillion and growth rate of 6.9%, China continues to generate high economic growth rates with rising levels of affluence. Dominated by SMEs, the economy of the country has become stronger in and the Chinese government designed a series of policy measures to support the development of SMEs. In addition, the increasing number of Internet users has also motivated more people to resort to crowdfunding. All these facts are relevant to the development of crowdfunding industry. Although crowdfunding was introduced into Chinese market later than Europe, it has shown a significant contribution to the financial inclusion for the development of financial industry in the country, and more generally in the APAC area. In China, the first platform-Demohour-was launched in 2011, while the first European platform was launched in 1999. This is observable by looking at the expansion rate of platforms created from year to year; the amount of capital raised by crowdfunding platforms and a more importantly, the concerns of regulator on the need of establishing clear frameworks and regulations to govern the crowdfunding activity as an alternative for financing the start-ups and SMEs. To carry out this study, I identified all the crowdfunding platforms in Chinese market and analyzed their main characteristics.

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