Hong Kong yet to offer attractive playing field for crowdfunding ventures

Simon Deane was recently quoted in an article on crowdfunding in China Daily that discussed how despite the hype, Hong Kong ventures have struggled to finance their growth.

According to China Daily, at least four local equity crowdfunding websites are known to be operating amid the burgeoning local crowdfunding scene, but official figures are unavailable. Having struggled to survive and thrive for two to three years, Fund2.Me and Colony88, two of the four headline-making local equity crowdfunding sites, ended up having to close down.

Simon explained that there are no specific regulations or guidelines on equity crowdfunding adopted by the SFC that lawyers can refer to; and he recalled several clients, including one from the Chinese mainland, wanting to launch crowdfunding platforms in Hong Kong that have come to him for legal advice.

All of them, who could hardly believe that starting a crowdfunding platform in global business hub Hong Kong could be so difficult and the procedure so unclear, ended up being scared away by the stringent regulations, said Simon.

“We don’t think the SFC has granted approval to a collective investment scheme involving crowdfunding yet,” he said.

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Simon Deane

Consultant | Banking and Finance

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