by: Grow VC Group

According to recent forecasts, China is expected to become the largest economy in the world by the end of this year. What if securities crowdfunding is allowed there? And what if it happens even before Title III is released?

The situation for crowdfunding in China is mixed: reward crowdfunding is already working in the Chinese Republic, offering to artists and creatives the possibility to raise funds for their projects in an innovative way. Peer-to-peer lending has been up and running for a few years now. However, as Crowd Valley reported in a recent article , P2P lending is undergoing a decline in the region, as many players are getting out of the market.

Two of the main reasons for the many failures, after a multiyear period of steep growth, are the liquidity squeeze enacted by the central bank at the end of last year and the heavy competition. Equity crowdfunding is instead not allowed yet, since public solicitations of investments is forbidden. However, one platform found a way around it, allowing self-declared professional investors to invest in a Special Purpose Vehicle which then buys the shares of the company seeking equity capital.

Read the whole article on Crowd Valley Blog.

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Grow VC Group The Grow VC Group is the world leading, global pioneer of securities crowd funding, peer to peer marketplaces, new investment models and global business development. Established in 2009, the Group has developed new investment models on six continents and continues to innovate the global market.

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