Study Of Construction And Risk Prevention Of Offshore Financial Market In Pilot Free Trade Zone

As a product of financial innovation and financial liberalization,the offshore financial market has developed rapidly in the international financial center and the world free trade port area by virtue of its limited system constraints,favorable capital cross-border flow and low financing cost.The major mission of China Pilot Free Trade Zone is to explore a system that adapts to the transition from the government-led economy to a higher-level market-oriented economy.At the beginning of China Pilot Free Trade Zone creation,government put the innovative financial products,offshore financial services as an important aspect of its system testing and innovation.Therefore,to construct the offshore financial market under the framework of China Pilot Free Trade Zone,manage the financial reform of China Pilot Free Trade Zone according to the rules of the offshore financial market,which can expand the risk diversification characteristics of the offshore financial industry,create a good institutional environment and market conditions,accelerate the integration of China and the new international rules,form a "can be copied,can be extended,can be upgraded" system experience,promote China's opening up process,accelerate the realization of trade liberalization,investment facilitation.In recent years,the reform of financial liberalization and the practice of financial innovation in Pilot Free Trade Zone have promoted the idea of the construction of offshore financial market in Pilot Free Trade Zone,but there are no scholars have systematically studied and demonstrated.As the theoretical free trade port area,reexamining China Pilot Free Trade Area and its "within territory but out of customs" Characteristic and "virtual overseas" Environment,analyzing the theory support and location mechanism of the offshore market construction,discussing the experiment of relaxing the financial control on the offshore market,balancing between deregulation and risk regulation,which have a great significance to speed up the goal of financial reform China Pilot Free Trade Zone and reduce the negative impact of financial liberalization on the domestic financial system.Therefore,this paper takes the offshore financial market in China Pilot Free Trade Zone as the research object,and takes "Why to construct "-" can or can't construct "-" how to construct "-" risk prevention " as the main line through the full text.Based on the basic theories of location selection and the relationship between financial liberalization and financial risk,and so on,this paper firstly sums up the experiences of the world free trade port and offshore financial market construction and development,sorts out the "location conditions,institutional elements,risk prevention," the three enlightenment which point out the following research ideas.Around "can or can't construct",the fourth chapter analyzes the feasibility and necessity of the offshore financial market construction by investigating China Pilot Free Trade Zone,constructs the evaluation index system of development potential of the offshore financial market in China Pilot Free Trade Zone and calculates the validity of the index,establishes a measurement model to demonstrate the development potential of the key areas which have been approved for Pilot Free Trade Zone and the location choice of the offshore financial market construction.Around the"how to build",the fifth chapter takes Shanghai pilot free trade area as an example,from the macro perspective to put forward the offshore financial market phased position,system model and the development strategy of taking Free Trade Account as implementation carrier,from a micro perspective to guide the formation mechanism of RMB interest rate and exchange rate on the offshore financial market,demonstrate the path measures of relaxing financial regulation,RMB capital account liberalization on the offshore financial market under the premise of risk control.Around the "risk prevention",the sixth chapter expounds the risk spillover effect of the RMB offshore financial market on the domestic market through the empirical analysis,discusses the systemic financial risk of the offshore market in China Pilot Free Trade Zone,explores the source of the risk spill and the object of risk supervision,and puts forward the preventive measures accordingly.Finally,the article puts forward policy suggestions for the offshore financial market construction and smooth operation in China pilot free trade area.This paper attempts to carry out the following innovative work:(1)Based on the analysis of international experience,this paper constructs the evaluation index system of development potential of the offshore financial market in China Pilot Free Trade Zone.Using the factor analysis method,it is concluded that the factors influencing the development of offshore financial market can be summarized as foreign economic and trade factor,financial operation and supporting guarantee factor,economic growth factor,which in turn indicate the cultivation base,the foundation of construction,the development speed of the target area,for the study of China Pilot Free Trade Zone offshore financial market formation and development,has a strong overall interpretation.(2)Based on the above-mentioned index system,this paper establishes the econometric analysis model,compares the 13 target areas(13 cities in the 1 + 3 +7 pattern of China Pilot Free Trade Zones)with the developed international free trade port Hong Kong,and points out that Shanghai,Shenzhen,Guangzhou and Tianjin can be used as the target areas for the offshore market in China Pilot Free Trade Zone.(3)Based on the hypothesis of ternary paradox and predecessors' research,this paper constructs the eclectic strategies model of the capital account liberalization of offshore foreign exchange market in Shanghai Pilot Free Trade Zone,partitions three intervals as pilot liberalization of capital account,government intervention and strict control of capital account,focus on the interval of capital account pilot liberalization to discuss,comes to the conclusion that to relax the offshore RMB exchange rate,interest rate volatility,expand the scale of offshore foreign exchange market,reduce market transaction costs and improve the flexibility of foreign exchange supply.According to the conclusion,this paper puts forward the measures of the relaxation of financial regulation and financial liberalization reform on the offshore financial market.(4)Using the CoVaR model to measure the risk spillover effect and conduction mechanism of offshore financial market in China,this paper points out that there are long-term systemic financial risk spillovers in Hong Kong and Taiwan offshore market on the domestic financial market,which concludes that the development of the offshore market in pilot free trade area will also raise the risk to the domestic financial system.Therefore,the paper puts forward the prevention measures to balance the relationship between financial deregulation and risk regulation.In view of the current low degree of financial openness in China,the reform of financial regulation is still being promoted.The construction of offshore financial market in China Pilot Free Trade Zone has a transitional and buffer significance.In order to further implement the system experience of "can be copied,can be extended,can be upgraded",this paper puts forward the following policy suggestions:to expand the offshore business system on the offshore financial market in China Pilot Free Trade Zone,improve the policy system,improve the account management system,standardize the market management system,build a risk regulatory system.