Research On The Development Of Yunnan 's Cross - Border RMB Settlement Under The Comprehensive Reform Of Financial Reform Along The Frontier

With accelerating steps of economic globalization and increasing comprehensive strength of China, RMB has increasing influence internationally and gets approval of more world countries. Yunnan Province, an important door for opening southwestern parts of China, may develop cross-border RMB settlement to expand influence of RMB in southwestern surrounding countries and drive development of regional economy and finance industry of Yunnan Province. So, it plays a benign driving role in the development of the whole national economy.Yunnan Province is one of the early provinces to conduct cross-border transaction and financial cooperation with border countries. Because of early trade foundation and unique settlement methods, the state formally approved Yunnan Province to conduct trial operation on cross-border RMB settlement in 2010. Then, cross-border RMB settlement of Yunnan Province started its development with support of policy.However, owing to relatively weak economic foundation of Yunnan Province and low level of its financial development, it cannot fully arouse enthusiasm of market, thus causing that no support is available for development of cross-border RMB settlement,its development speed is rather slow and its effects are not ideal. On November 20,2013, the State Council, People’s Bank of China and the other 9 ministries jointly issued General Scheme for Yunnan Province and Guangxi Zhuang Autonomous Region to Build Test Zone for Comprehensive Reform of Border Finance.Comprehensive reform of Yunnan Province for border finance was formally started.Under new policy background, cross-border RMB settlement of Yunnan Province obtained a new developing opportunity. Meanwhile, continuing to promote development of cross-border RMB settlement can provide basic support for reform of border finance of Yunnan Province as well.Based on comprehensive reform of Yunnan Province on border finance, this paper combined theory with practice to study development of cross-border RMBsettlement of Yunnan Province. Based on related theories and literature, this paper cleared up developing process and current situation of cross-border RMB settlement of China in general on one hand and shaped policy background and business framework for analyzing cross-border RMB settlement of Yunnan Province.Moreover, it introduced advanced Shenzhen Qianhai District and Shanghai Free Trade Zone with developed finance industry as the case, and summarized their advanced experience of development for reference. On the other hand, it reviewed general contents of reform on border finance of Yunnan Province, and analyzed advantageous of developing cross-border RMB settlement under comprehensive reform of border finance of Yunnan Province. Moreover, it highlighted the relation of developing cross-border RMB settlement with financial reform. According to current situation of cross-border RMB settlement of two years since comprehensive reform of border finance, advancing effects of cross-border RMB settlement are still not ideal even though Yunnan Province promotes it with strong policy advantages and important points. So, it focused on analyzing current existing problems of Yunnan Province for developing cross-border RMB settlement and proposed corresponding countermeasures and suggestions for developing cross-border RMB settlement according to its current development and existing problems in Yunnan Province.