Study On Legal System Of Financial Supervision Of China (Shanghai) Pilot Free Trade Zone

Free Trade Zone in the modern financial industry occupies a very important position, and the financial supervision is essential to the rapid and steady development of the financial industry in FTZ. What’s more, the legal system of financial supervision and financial supervision is the lowest and most important security for financial supervision, so the research on the legal system within the free trade zone seems rather important. China(Shanghai) Pilot free trade zone is a new era of the government to continue to expand the reform and open policy and to deepen the innovation of economic system, which can be seemed as the latest trend represents the future development of China’s economy. Financial reform and innovation is an important part of the pilot test area. The success or failure of the reform is connected with, on the one hand, China’s financial development level and direction, on the other hand, the FTZ’s the replication and extension in the future.This paper’s main research is the legal system of financial supervision of Shanghai free trade test area from the perspective of international law. The theory of financial supervision under the background of the free trade zone needs to be reconstructed on the basis of the general concept of free trade zone and the financial supervision. This reconstruction is based on the elements of financial regulation, including the concept, regulatory objectives and content of supervision, and this theory is also applicable to the China(Shanghai) Pilot Free Trade Zone. Whereas the establishment of the new rules of international economic under the negotiations of TPP, the financial reform and innovation of China(Shanghai) Pilot Free Trade Zone is rather significant. At the same time, the financial reform is also related to the overall situation of China’s financial liberalization and innovation, the realization of the new international financial center of Shanghai.As FTZ isn’t original for China, so we need to learn from foreign advanced experience to improve the legal system of financial supervision of China(Shanghai) Pilot Free Trade Zone. In view of this studies of FTZs of world wield, and according to the size and visibility, the three typical cases are selected,American New York free trade port, port of Hamburg and Hong Kong Free Trade Zone. Then this paper sorts out the financial regulatory system and legal system of financial supervision,and sum up the useful experience for China(Shanghai) Pilot Free Trade Zone, including the strict and complete legal system of financial supervision, the proper relationship between the financial innovation and financial regulation.China(Shanghai) Pilot Free Trade Zone is a significant step in the new period of reform and opening-up of China, and the content of financial reform is the key point. In general, the financial pilot including interest rate liberalization, free exchange, opening up the financial sector, financial product innovation, offshore business, which can be summed up as the RMB capital account convertibility, the relaxation of financial market access, the promotion of Shanghai offshore financial center, the improvement of the financial service function. From the beginning of the establishment of pilot, the financial regulatory legislation has been listed as the focus of the work. The government has issued several decrees, including Framework Plan for the China(Shanghai) Pilot Free Trade Zone " and related decisions, " Opinion of General Administration of Quality Supervision, Inspection & Quarantine on Supporting the Building up of China(Shanghai) Pilot Free Trade Zone ", and " Notice of the Shanghai Headquarters of the People’s Bank of China on Effectively Combating Money Laundering and Terrorist Financing in the China(Shanghai) Pilot Free Trade Zone “and so on.To improve the legal system of financial supervision of China(Shanghai) Pilot Free Trade Zone, we must first analyze its obstacles. Overall, now China’s existing legal system and financial supervision mechanism is not perfect, and the establishment of a FTZ’s legal system lacks reference precedent, and it’s difficult to consort the legal system of financial supervision within and outside the Pilot. Firstly, we should take the mixed type of financial regulation mode in pilot, while establishing a separate test area the basic framework of the financial regulatory system, which includes the selection of settings of regulatory bodies, regulatory means and methods.Then we need to perfect the legal system of financial regulation of the pilot based on the existing, and to establish an early warning mechanism and emergency control mechanism supervision for financial risk as soon as possible. Finally, we need to innovate the supervision mode of the flows of cash.Shanghai free trade zone is an experimental field of financial reform for China. Although there are international experience for reference, it‘s more important to find a suitable way of financial supervision by repeated practice, which is suited as of our country’s actual situation. Only in this way, the original intention of the pilot can be achieved.