Study Of Nanning Regional Financial Center Building Under CAFTA Framework

China-ASEAN free trade area (CAFTA) is the largest free trade area which was established by the developing countries in the world. Meanwhile, CAFTA is the first free trade area that was established by China and other countries. As the establishment of CAFTA, the trade has a further expansion between China and ASEAN. Consequently, Guangxi province becomes the bridgehead of foreign trade development between China and ASEAN. Furthermore, the official approval of’ The development planning of Guangxi Beibu gulf economic zone" made Nanning earn a historic opportunity for development. As the core city of Beibu gulf economic zone, Nanning has lots of comparative advantages, including policy support, location advantages, actual financial demand and so on. All that laid a foundation of Nanning to become the regional financial center for serving CAFTA.Finance is the core of modern economy; the development of economy can generate financial demand and promote the expansion of the financial system. On the other hand, financial development can drive the economic growth. Therefore, in Nanning, developing regional economy is impacted by constructing a perfect financial system, and that neither can exist effectively without the other. The author, on the perspective of the financial center, discusses how to build Nanning into a regional financial center under CAFTA on the basis of the existing situations, including financial markets, economic base, infrastructure and urban development potential.Firstly, this paper introduces the basic theory of financial center. Through the analysis of the related theory can let us make a further study of the financial center. Secondly, the author introduces the CAFTA background of Nanning regional financial center and analysis the characteristics of CAFTA on market environment, trade and finance. Furthermore, the paper explains why the main economic hinterland-Beibu gulf economic zone needs to select Nanning to construct of regional financial center. Thirdly, by building a multiple linear regression model, the paper makes an analysis the influence of the four categories indexes of Nanning financial industry output value. And then getting eight factors which have the maximum of correlation with four types indexes. On the basis of that, the author conclude the function orientation of Nanning regional financial center-to become the regional currency settlement center, fund and asset management center, business center, futures investment trade center. As typical case of demand response and supply lead, Amsterdam and Singapore were choosing to make a contrast analysis. Combining with the characteristics of the CAFTA, the author make a path choice of how to construct Nanning regional financial center. In the end of the paper, the author respectively proposes same suggestions in Nanning’s financial markets, economic construction, infrastructure, and financial center city development. The suggestions are putting forward the development of potential financial market mechanism, optimizing economy, improving infrastructure, strengthening regional cooperation for promoting regional financial center development potentials, etc.