The Analysis Of The Effection Of CNY Offshore Market Towards Financial System In China

Offshore financial business has developed more than50years since the lastcentury. The international monetary fund (IMF) defines its absorption for Banks andother institutions "non-resident" funds and to the residents provide various financialservices. Starting from the Eurodollar market, the market expanding into Asia, LatinAmerica and many places around the world. Its main body by the management offoreign lenders、 investors、and foreign borrowers are residents of the internationalfinancial market. The non-resident of the host banks’ countries are the main source offunds.China’s economic and political characteristics has its particularity, whichdetermine the RMB to go through a long time on the internationalization process, theresearch explore must step by step, cannot overnight. This view has become theconsensus of many domestic experts and scholars, and among these views, establishand develop the offshore Yuan market as the development path of RMBinternationalization has become more and more consensus. For China who has notopen the capital account control, set up an offshore RMB market and make the RMBfreely convertible for promoting our country is a remarkable significance of theinfluence of RMB internationalization. In recent years, the practice and developmentof continuously confirm this way is feasible. In this early stage, carefully study theoffshore markets of developed countries experience, correct the history of theoffshore market, make its constantly reform and innovation is a priority for thecurrent development of financial market in China. In this article, through rigorous andmeticulous analysis and comparison of the specific conditions between the offshore financial market in our country and developed countries, according to the actualcircumstance of the financial market at the present stage in China, listed the practicalstrategies of RMB offshore financial market development.This article includes six parts, in the introduction, through the analysis of RMBoffshore financial market development present situation, emphatically illustrates theactual article selected topic background and the practical significance for financialmarket development in China at the present stage, in the literature review partintroduces the research and development of the offshore market present situation,finally expounds the main innovation points and deficiencies part in this paper.The second part mainly discusses the present situation of the RMB offshorefinancial market development. Analyzes the development experience of offshorefinancial market in recent years in developed countries and development outcomes.The third part from the RMB’s internationalization process, the financial productinnovation、foreign exchange reserves and the international influence of RMB’soffshore market in our country the influence of monetary and financial research andanalysis.The fourth part focuses on the RMB’s offshore market for the RMB exchangerate、monetary policy、macro economic development and the impact of capital flows.The fifth part is mainly for the offshore RMB market risk prevention andsupervision mode, perfect the relevant offshore business laws and regulations,effectively circumvent the RMB offshore market risk, etc, puts forward the relevantSuggestions on the development of RMB offshore financial market.The sixth part is conclusions, the study of this article and analysis, the inductionand summary of the system.This article from the demand of the actual development of our country, acomprehensive discussion of RMB offshore market on the impact of China’s financialsystem, for the development of China’s reform and opening up, the marketization of financial markets, has important practical significance.