Research On Offshore Financial Market Development After Accessing To WTO

Offshore Financial Market (OFM) and its development have played a very important role of the world's economic prosperity. The tidal wave of establishing OFM is in the ascendant since the global financial liberalization and internationalization in the 80s. Many countries, especially in Asia, have established their national OFMs, which will be surely a challenge to China as the centre of Eastasia.China accessed to the WTO on the Nov. 10^th 2001. According to WTO, China will complete the openness of its national financial market, and both domestic and foreign banks will face all-around competition directly. The study of OFM will offer valuable experiences to China's financial internationalization, and will also be of great benefit to increase the competitive competence of China's financial industry.Along with the establishment of its market economic system, China should actively plan and design its OFM so as to further upgrade its international financial position and increase its competitive competence. OFM will accelerate China's financial internationalization, satisfy various needs of offshore financial services, and offer an arena of training technical level and competitive competence to face the all-around challenges of the openness after accessing to WTO for both of China's financial supervision organizations and commercial banks. Viewing from the long-term perspective, developing OFM is also a feasible path and proactive measure for Chinese government to early realize its international financial center strategy. China, however, is still facing restrictive problems and a variety of risks for establishing OFM, especially today when finance plays a key role of the modern economy, which allows no mistakes in the process of establishing OFM. Therefore, we have to fully analyze and study China's real situation and to be competent and disciplined and take precautions averting perils.Based on this, this paper firstly studied the development process and its hidden reasons of OFM, analyzed the basic theories of OFM development, then summarized China's prophase experiences and lessons of the trial execution OFM, thirdly, using international OFM's experiences, constructive put forward the proposal of establishing China's OFM by setting Shanghai as the centre, and mainly analyzed the necessity and feasibility of the proposal. Finally, from the policy-driving and supervision perspectives put forward the conception and strategy of establishing China's Shanghai-centered OFM Cluster.