Study Of Development Of RMB Offshore Financial Market In Hong Kong

Third Plenary Session of 18th CPC Central Committee demands to promote reform of the financial sector "to improve financial market system", accelerates the process of internationalization of RMB, providing a good opportunity for promoting the gradual opening of capital projects to improve the financial market system. Internationalization of RMB requires a mature and stable offshore financial market to provide a variety of products and services, the offshore financial market act as a fulcrum to promote the internationalization of the RMB. The mainland China and Hong kong SAR signed a bilateral trade and economic cooperation arrangements in June 2003, began implementing the "Mainland and Hong KongCloser Economic Partnership Arrangement" CEPA agreement in the following year on January 1. The PBC and the Hong kong SAR Monetary Authority signed the "Memorandum of Cooperation" in November, agreed BOC to provide Hong KongRMB deposits, exchange, remittance and settlement services, RMB offshore market in Hong Kongcame into being, with the help of active policies, it grow up quickly. It defined the strategic position of RMB offshore in Hong Kongbusiness center and asset management center in 2011.The size of RMB offshore financial market in Hong Kongis small and the degree of activity is not high, the related financial infrastructure also needs further improvement, in addition, handling the relation between offshore and onshore financial markets is also crucial. This article base on analytical thinking of asking questions-analysis of the problem-problem solving, analyze the current situation and problems of the development of RMB offshore financial market in Hong Kong, evidenced by theoretical models to promote the role of the offshore market in the onshore market for financial deepening, linkage analysis of offshore and onshore markets through empirical model.On the basis of the relevant literature review conducted on the offshore financial and depth study of the theory of offshore finance. Through the qualitative and quantitative analysis, study the development of RMB offshore financial market in Hong Kong, including the money market, the bond market, and the foreign exchange market, pointing out bottlenecks restricting the development of RMB offshore financial market in Hong Kong. Analyze deepening effect on the mainland shore of the offshore financial market by building a theoretical model, then make a empirical analysis for the linkage mechanism of RMB offshore market and onshore market by VAR. Choose Singapore as representative of emerging market country, Japan as representative of developed country, summarize the business practices of their offshore financial markets. On the basis of qualitative and quantitative analysis, proposed a series of policy recommendations from the feasibility of improving the RMB back mechanism, strengthen the offshore financial market risk management, optimization RMB offshore market infrastructure and establish multi-market aspects of offshore RMB financial system.