A Study On The Competitive Strategies And Future Analysis Of Hong Kong RMB Offshore Business Center

The RMB offshore business center in Hong Kong is the starting point of Yuan’s Internationalization.As the crisis mounted in2008, international currencies continue their slide, which opens newopportunities for Yuan. But Yuan’s internationalization is a long-term and complicated project withthe global stationing process of RMB offshore business centers. What’s the orientation of RMBoffshore business centers? How to assess the competitiveness of these centers? To seize the rareopportunities, what step should Hong Kong take next? These problems have become the keyconcern of China, as well as the world. Looking forward for Hong Kong’s business center isnecessary. It will benefit Hong Kong in enhancing the competitiveness as a global finance center. Itwill boost the financial cooperation between Hong Kong and the Mainland under the “First Try”policy. What’s more, it’s an important pillar in realizing the finance side of “ChineseDream”—Yuan’s internationalization.Under the guidance of the “Path Dependence” and the Financial Center Location theories, thisessay analyzed the competitiveness of Hong Kong center from the internal and external aspects andlooked into the future. The7-chapter article can be divided to4parts. First, make a literal review onthe current situation and restricted conditions of Hong Kong’s RMB offshore business center.Second, establish an evaluation index system of RMB offshore business center, which serve thepurpose of Yuan’s internationalization; do the factor analysis by putting the data of Hong Kong,Singapore and London in the system. Third, use the extensive-form game representation to raise thecompetitive strategies Hong Kong should implement. Forth, explicit the orientation and the stageby stage executing strategy of Hong Kong’s business center, propose solutions for the key problemsHong Kong facing. These key problems covered the trade products, the trading mechanism and thefoundations needed in the development process.The empirical results match the market reality. That is Hong Kong topped the competitivenessranking of the RMB offshore business, followed by Singapore and London. It indicates that theIndex System has its practicality. Extensive game analysis shows that Hong Kong should take firstcollaborate with London to defeat Singapore. After wining the leading role, Hong Kong should implement the multilateral cooperation strategy. Moreover, Hong Kong should build acomprehensive wholesale-type RMB offshore business center, which meet the substantialeconomical needs of the mainland. This orientation can ensure the safety of capital account in theopening process.