Research On RMB Offshore Market Strategic Arrangement

In the rapid progress of RMB internationalization in recent years,the research on RMB offshore market has lagged behind the government practice.Including offshore banking research and Academic research about the order of RMB reforms and polices,lack of theoretical basis and strategic target of offshore market,and focus too much on the risk,even the debate about whether to build or not.At the same time,in addition to have in-depth study on Bong Kong’s RMB offshore market,there is not a complete study framework for potential RMB offshore market strategic arrangement and specific planning path.In the era of international monopoly capitalism,the currency power is dominant because of financial capital globalization.By cultivating currency dependence in target countries,home country can get currency power adapted to its political and economic power.Currency dependence relies on the main global economic situation,the asymmetric relationship of economic and political between home country and target countries.The realistic approach to the RMB internationalization is choosing RMB offshore market strategic support,cultivating global currency dependence on RMB,and getting rid of the dollar hegemony gradually.As a late-development country,RMB offshore market is motivated with non-market endogenous but the exogenous by the government dominated.Therefore,how to choose RMB offshore market strategic support is the key to the offshore market.By currency dependence theory,RMB offshore market will have the characteristics of the interdependence.At the same time,is more likely to show the characteristics of hierarchy of the financial system in the financial capital globalization period.In addition,after the global financial crisis in 2008,the offshore financial markets are precede resistance as well as stricter regulations because of tax problems,RMB offshore market will inevitably need to "non book-keeping".This paper compiles RMB Offshore Market Strategic Support Index(ROMSSI)to make the quantitative analysis of global strategic layout on RMB offshore market with 16 specific indexes.There are three aspects to measure the strength of the target countries(region)against the United States:strategic resources,the independence of government,the country’s financial strength;and two aspects to measure the bilateral relationship between target countries and China:political and diplomatic relations,currency and financial relations respectively.Results shows that the UK is the most dominant target country in global RMB offshore market currently,China should take advantage of UK’s strong financial power,keen competition consciousness,and strong sense of mutual benefit,as well as the impact of the Bretix to lead the development of RMB offshore market in Europe.Secondly,this paper further considers the effect of hierarchy of the financial system to ROMSSI on the basis of global financial centres index,and sets bilateral trade with China and FDI to China to improve ROMSSI.Results show that Hong Kong jumped from 26 to 1 in 2015,and Singapore also jumped from 24 to rank 7.And the strategic role of the RMB offshore market in Asia is exporting financial services functions to the southeast Asia.Because it is difficult to build the same exchange market in small southeast Asian economies as in northeast Asia,RMB offshore market should focus on how to attract enterprises and government of these countries(regions)of in RMB financing and issuance of RMB bonds,and provide various financing tools for economic development and financial services,and gradually achieve the RMB pricing in Asian.The policy of RMB offshore market in Asian should be leaning to Singapore.