Regulation of Equity Crowdfunding in Hong Kong

In recent years, crowdfunding, an innovative method of raising capital, has emerged. That an increasing trend of small and medium enterprises (SMEs) that may have difficulty accessing equity funding due to the costs of disclosure and other requirements are engaging into crowdfunding activities is observed. To harness the financial power of crowds, foreign jurisdictions including the United States have enacted specific legislations governing equity crowdfunding. In response to the global trend, it was argued that Hong Kong should follow the global practices in order to enhance its role as a global financial centre. Therefore, it is crucial for Hong Kong to explore its potential needs and possibilities in legislating on crowdfunding.