Hong Kong’s RMB Offshore Market Development Process And Its Influencing Factors

Since the reform and opening up, China’s opening to the outside world is constantly developing, and the whole strength of the economy is growing, under the background of the increasingly close integration of the Chinese economy and the world economy, the number of the circulation of RMB in the international market will definitely grow; in order to promote the internationalization of the RMB. and handle the increasing offshore RMB business, the establishment of an offshore RMB market has become an objective requirement. At present, China does not have the conditions for the development of domestic offshore centers, Hong Kong’s natural geographic advantages, well-developed financial markets and strong economic strength makes the establishment and development of the offshore RMB market meet this requirement, Hong Kong has become RMB offshore market is an inevitable choice. In2003, the RMB business in Hong Kong was officially launched, after nearly a decade of development, regardless of the size of the transaction or type of business development of the offshore RMB market in Hong Kong have made tremendous achievements. Through the exercise of the functions of the offshore RMB center, bring all sorts of benefits to the mainland, and greatly enhance and consolidate its own status as an international financial center. However, while many accomplishments, the RMB on offshore market lack enough return channels, certain impact on the domestic economy, even the crime of money laundering and other factors constraint the further development of the offshore market. Faced with these problems, the Mainland and Hong Kong authorities should take measures to eliminate the constraints to promote the further development of the offshore market in Hong Kong has become one of the focus of academic circles at home and abroad. As the first offshore RMB center, the offshore market in Hong Kong has a direct role in the process of internationalization of the RMB, and provide valuable reference to Mainland about exchange and financial reforms. Therefore, a comprehensive analysis of Hong Kong’s offshore RMB market development process and influencing factors, and solutions to the constraints, could not only summarize the beneficial experience for the future construction of the offshore RMB market, but also provide a basis for decision making, help it breakthrough the bottleneck, and continue to mature.This paper reviews the theoretical results and the actual progress of the development of the offshore RMB market in Hong Kong since2003, make a comprehensive summary of the process of the development of offshore RMB market in Hong Kong, detailing the status of the offshore market, form the countermeasures and suggestions for the current constraints to help breakthrough the bottleneck of the development.The full text is structured as follows. The first chapter illustrates the background and significance of the topic, explains the content, methods and ideas on the basis of the achievements of scholars at home and abroad; specifies innovation of this paper and insufficient.The second chapter describes the necessity and positive significance of the development of Hong Kong’s offshore RMB market, analysis shows that: with the continuous improvement of the RMB internationalization, RMB liquidity in Hong Kong is growing, in order to meet the growing need of RMB liquidity and to maintain Hong Kong’s international financial center, the development of the offshore market in Hong Kong is very necessary. Moreover, for both the Mainland and Hong Kong, the development of the offshore RMB market in Hong Kong have a very positive sense.The third chapter details the development of the offshore RMB market in Hong Kong and the present situation. From the beginning of RMB business in Hong Kong in2003, make a review of significant progress until now. On this basis,summarize the current status and characteristics of Hong Kong’s offshore RMB market.The fourth chapter analyzes the positive factors for the development of offshore RMB market in Hong Kong, including the Hong Kong’s own advantages, the economies interdependence of Hong Kong and China offers good development environment, increasing RMB demand and supply of Hong Kong market creats market platform. Analyzed favorable conditions for the development of Hong Kong’s RMB offshore market from three aspects.The fifth chapter analyzes the constraint factors of Hong Kong’s offshore RMB market. The overseas RMB returning mechanism is poor、RMB stock expansion meets bottleneck, the impact on the domestic economy, as well as money laundering, etc.Chapter sixth put forward a series of countermeasures and suggestions for constraints cited in Chapter fifth.