Study Of The Theories Of International Offshore Financial Market And Its Applications To China

International offshore financial market is a new kind of international financial market, which emerged in the 50th of 20th century. It refers to the free trading market which manages the currencies that can be exchanged freely, whose trades take place beyond the county which issues the currency, and beyond the people who lives in the country, and not restricted by the locating country's system of taxes, and enjoys certain favorable treatments. In fact, it is the internationalized short-term market of capital debit and credit, in which currency turn into capital without the restriction of national laws and fulfilled internationalization.International offshore financial market originated from European dollar trade (so it was first called European dollar market), and it appeared in London at first in small scale at that time. From the 60th of the 20th century, the trade of European dollar market developed very fast, and the scale of debit and credit was beyond dollar. European Mark, Swiss Franc, and Pound gradually appeared in the market, therefore, international offshore market extended greatly. From the 60th to the 70th of 20th century, the annual capital increasing rate was over 40%, and the total amount of multinational increased several times. The rapid increase in the recent 30 years has made the offshore market more and more mature, and the types of the market have become verified which can be generalized into four types: functional offshore financial market, harbor of tax avoidance offshore financial market, fund offshore financial market and contract and open offshore financial market. The appearance and development of offshore financial market makes currency turn into capital without the restriction of national laws and fulfilled internationalization, therefore a new change occurs in modern financial market. Offshore financial market, the financial market related to other countries which is also called international financial market and domestic financial market within one country construct the structure of modern financial market. The series of features of offshore finance show that offshore finance is an actual or modern international finance. It makes the banks around the world break the ownership of nations or citizens, and walk to the wide horizon of actual international finance. It adapts to the world trend of peace and development and the need of financial means from the world economy development during the time of new technology revolution. It is one of the most important innovations in the developing history of modern international financial development.International offshore market has a new change in the mid of 80th of the 20th century after 30 years of rapid development, and the rate of capital in debt began to fall because the main international financial markets around the world inosculated the onshore and offshore financial markets from the aspects of revenue, administrative system, favorable policies and environment laws, etc. However, to consider that offshore financial market loses its vitality and the necessity to exist are not correct, because the appearance, development and extension of offshore financial market relate directly with financial innovation and financial integration. It is the biggest financial innovation after the war. With the development of world financial market's integration, the need of offshore financial market is still very strong; moreover, for the developing countries, the construction of offshore financial market can satisfy the foreign investors' needs to environments to a great extent, and to avoid the unnecessary impacts to the policy system in effect within the country, so as to achieve the aim to introduce the foreign investment actively and rationally, and to avoid the interference of macroscopically control by the foreign investment. With the liberalization of finance and the stricter of intendance of revenue and exchange of information, the development of offshore financial market will show some new features instead of stagnation.