Crowdfunding facilitates development of financial markets: Experts

BEIJING - Crowdfunding is injecting impetus into financial markets, as its features better satisfy the current trends, said Matthew Gamser, CEO of SME Finance Forum during a seminar of future finance held on Saturday in Beijing.

Gamser also expressed hope that the 2016 G20 summit would provide a platform for countries to discuss about crowdfunding regulations in order to speed up understanding, move everybody forward and figure out how to cope with problems and minimize risks.

Crowndfunding, bearing more social and environmental responsibilities, plays a subversive role in the evolution of financial sector because it poses challenges to outdated business models. In addition, it more acutely matches the balance between needs and demands, according to Zhang Xiaochen, Co-Founder at CrowdFund China Society.

Besides, crowndfunding provides new opportunities for innovation and taps development potential in vertical industries with the access of more investors and capitals, added Zhang.

In terms of crowndfunding in China, he said, it boasts large market potential, vigorous investment desire and well-established infrastructure including Internet as well as mobile phones, facilitated by the policy environment of mass innovation and entrepreneurship.

However, crowndfunding in China also faces certain challenges. "Since the concept of 'crowndfunding' was introduced into China in 2011, it lacks the experience of regulation and governance".

Therefore, government plays a very important role in the process of crowdfunding. There should be some regulations in this regard because either too strict or lenient regulation may lead to high risks or low vitality, Zhang noted.

Bao Zhongtie, a leading financial expert of Talkingdata, a Chinese mobile data platform, said apart from that, it is imperative to build a big data system given the lack of credit reference system in China. By this, it could increase confidence and control risks, he said.