Abstract
According to a recent World Bank report, China holds the greatest potential for crowdfunding’s future. By 2025, the PRC could account for more than half of the global crowdfunding volume potentially totalling up to USD 50 billion. Even though crowdfunding was non-existent in China before 2011, its exponential growth rates reflect this potential. In 2014, Chinese citizens had contributed a total of USD 436 million (RMB 2.82 billion) to domestic crowdfunding projects; this figure rose to USD 864 million (RMB 5.585 billion) in the first half of 2015. Particularly since China’s government has passed draft regulations on equity crowdfunding in December 2014, the number of Chinese crowdfunding platforms (CFPs) has been increasing, from 142 in 2014 to 235 by the end of June 2015. As the PRC’s crowdfunding industry is still quite young, and its growth rates are expected to rise even further, China could indeed become the largest crowdfunding market in the world in the near future.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
Emmerson (2015).
- 2.
Massolution (2015, p. 13).
- 3.
Emmerson (2015).
- 4.
Massolution (2015, p. 52).
- 5.
infoDev (2013, p. 10).
- 6.
This number is likely to include only donation-, rewards-, and equity-based CFPs as China is said to have about 1000 debt-based P2P CFPs. See Ren (2015).
- 7.
Research and Markets (2015, n.p.).
- 8.
E.g. the number of a country’s Facebook users is utilised as a proxy for social media engagement. However, Facebook is officially banned from China. Yet, the PRC has a very high social media engagement; although the majority of Chinese use domestic social media.
- 9.
Funk (2016).
- 10.
Xie et al. (2016, p. i).
- 11.
People’s Bank of China (2014, pp. 173–176).
- 12.
People’s Bank of China (2014, p. 172).
- 13.
Xie et al. (2016, p. 30).
- 14.
People’s Bank of China (2014, p. 188).
- 15.
Own translation from Picot et al. (2002, p. 57): “sozial sanktionierbare Erwartungen, die sich auf die Handlungs- und Verhaltensweisen eines oder mehrerer Individuen beziehen”.
- 16.
Picot et al. (2002, pp. 43–57).
- 17.
According to North (1990), measurement (i.e. information research) and enforcement (i.e. monitoring) are those actions which afford transaction costs.
- 18.
North (1990, p. 34).
- 19.
North (1990, p. 3).
- 20.
Picot et al. (2002, p. 12).
- 21.
North (1990, p. 6).
- 22.
Aoki (2007, p. 19 ff.).
- 23.
These are predominantly findings on crowdfunding in the West.
- 24.
For more information on this conference see http://www.crowddialog.de/.
- 25.
For more information see http://crossasia.org/.
- 26.
- 27.
Sina Weibo, or its Chinese equivalent Xinlang Weibo [新浪微薄] is one of China’s most popular micro blogs.
References
Aoki M (2007) Endogenizing institutions and institutional changes. J Inst Econ 3(1):1–31
Emmerson L (2015) Crowdfunding industry overtakes venture capital and angel investing. Edited by Symbid blog. http://blog.symbid.com/2015/trends/crowdfunding-industry-overtakes-venture-capitaland-angel-investing/. Accessed 6 Jan 2016
Funk AS (2016) Institutions influencing the evolution of crowdfunding in China: a review of the world bank report on crowdfunding in the developing world. In: Brüntje D, Gajda O (eds) Crowdfunding in Europe. FGF studies in small business and entrepreneurship. Springer, Cham, pp 125–131
infoDev (2013) Crowdfunding’s potential for the developing world. Edited by The World Bank. Washington, DC
Massolution (ed) (2015) 2015CF crowdfunding industry report: the crowdfunding industry report
North D (1990) Institutions, institutional change, and economic performance. The Political economy of institutions and decisions. Cambridge University Press, Cambridge
People’s Bank of China (2014) China financial stability report 2014
Picot A, Dietl H, Franck E (2002) Organisation: Eine ökonomische Perspektive. 3. überarb. und erw. Aufl. Stuttgart: Schäffer-Poeschel
Ren D (2015) China’s internet finance sector challenges state-owned banks. http://www.scmp.com/business/banking-finance/article/1681799/chinas- internet- finance- sector- challenges- stateowned-banks. Accessed 26th Dec 2015
Research and Markets (ed) (2015) China internet crowdfunding and wealth management industry report, 2015. http://www.researchandmarkets.com/reports/3387667/china-internet-crowdfunding-and-wealth-management. Accessed 1 June 2016
Xie P, Zou C, Liu H (2016) Internet finance in China: introduction and practical approaches, 1st edn. Routledge, New York
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Funk, A.S. (2019). The Matter of Crowdfunding in China. In: Crowdfunding in China. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-319-97253-4_1
Download citation
DOI: https://doi.org/10.1007/978-3-319-97253-4_1
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-97252-7
Online ISBN: 978-3-319-97253-4
eBook Packages: Economics and FinanceEconomics and Finance (R0)