The Emergence Of RMB Offshore Finance Center,Its Favorable Significance And Risk Avoidance

Offshore in the 1960's rise to international financial markets development hasentered a brand new stage of development. The formation and development of offshorefinancial centre to traditional, segmented credit market into a unified internationalloan market, thereby enabling the international financial markets andinternationalization and liberalization. It is precisely because many of the world'soffshore financial centre rapid development that has enabled the countries of theinternational financial center into a unified international financial markets, thuspromoting the variety of financial transactions and innovative financial instrumentsto accelerate the development of international trade and promoting internationaleconomic progress and integration in the global economy. In recent years, as China'seconomic strength has been continually enhanced, and the international statusgradually improved, the demand for offshore is also expanding rapidly, and ourachievement in the regular item freely convertible, capital item have not been opened,economists proposed the " the RMB offshore financial centre."The author refer to a large amount of information in various economic scholars'view that the process of capital account liberalization and the rapid expansion ofinternational demand will inevitably lead to inconsistencies in the creation anddevelopment of offshore centre conclusions. Firstly, the author proves that practicalcondition of forming RMB offshore finance center has matured , on basis of thefollowing 4 aspects:1, whether it be common currency in the world;2,discrepancy offinancial control between domestic and oversea;3,expanding demand for RMBoversea;4,own conditions of finance center in Eastern Asia area. Then, on analyzingthe current conditions, the author put forward imagine that market will choose HongKong as RMB offshore finance center step by step;meanwhile, the author makes somediscussion about how to promote the development of the RMB Hong Kong offshore financecenter;at the same time, the author analyzes favorable significance which derivedfrom the emergence of RMB offshore finance center toward the Mainland and Hong Kong;finally, the author make some advice on how to avoid risk.