Research On The Legal Regulating Of The Offshore Financial Market In China

Offshore finance is various financial activities, which the trading currency outside the currencies overseas or issuer onshore financial circulation system, and mainly for the residents to participate.And who major in foreign currency trading currency to non-residents for market participation, free from the national or regional financial circulation system, between the local bank or foreign bank exchange of the formation of the financial system, can be referred to as the offshore financial market.Offshore finance is developed on the basis of traditional financial (i.e., the domestic financial and foreign financial), whose essence are all based on capital appreciation for the purpose of capital operation, but relative to traditional financial offshore finance tend to be more with times characteristics, more conform to the trend of globalization. It usually is between non-residents, in offshore currency for trading currencies are engaged in this financial transactions, cash transactions of supply and demand both sides are locals, trading main body "two head out"; Works virtualizaion, operating flexibility; The transaction object for non-market offshore currency of the host countries. These features in financing to promote the development of the global economy, economic effect and welfare effect, enhance market countries to speed up the process of global financial innovation, but also bring risks to the stability of the global financial system, excessive secrecy of harboring crime, lead to national tax evasion, tax haven "round-trip investment" enjoy "super national treatment" makes the resident and non-resident treatment face adverse selection and moral risk.Since June 1989, the people’s bank of China and the state administration of foreign exchange has approved the five such as China merchants bank branch in Shenzhen pilot run offshore financial business, China also have its own offshore financial business in. However, the driving factor in the international environment is constantly changing, and the current situation of the development of offshore financial market is also at the present stage in China is not ideal, there are many system obstacles:the lack of general principle of regulation of offshore financial market in China, legislation lags behind, the lack of a more complete offshore financial basic law. Offshore finance as a result of lack of form a complete set of special regulations, the negative effect is remarkable. Combined with the chaos and vacuum of the regulation, increased the operation risk of the development of offshore financial system in our country, and hard to cope with the risk management effectivelyThe existing development history of offshore financial market has very clearly show the characteristics of the "advantages and disadvantages coexist",both for host and participate is the severe test, developing countries to participate in this emerging market will face a major challenge. For our offshore financial market under the framework of legal development, we should be relatively mature international experience combined with the practice of our country, from the construction of the international offshore financial market and regulatory draw experiences and lessons, to lay a solid foundation for the development of China’s offshore financial business. Through investigation we found that:the rapid development of offshore financial market of the United States, Japan and Russia, in their process of domestic offshore financial market building and supervision, they all put emphasis on the selection of offshore financial market model, offshore financial market access rules, offshore financial business operation and management regulations, preferential tax and legal regulations of offshore financial market and the offshore financial market exit mechanism regulation rules. On this basis, pay attention to the offshore and onshore and win-win, for the regulation and the regulation of the game, the balance of both financial stability and efficiency.The perfect the legal system of offshore financial market in China, first of all, on the choice of operation mode, apparently unable to draw lessons from the management mode of inside and outside the body, but we can try appropriate flexibility, on the basis of the internal and external type separation model, for example, allow appropriate infiltration mode of offshore financial market, at the same time learn from international tax havens for the successful experience of offshore financial center, to a certain island closed area, establish a complete financial tax system, professional talent team and a sound legal protection, use tax havens of pattern be a viable approach. Second, in the regulation of offshore financial market, establish a unified legal supervision legal system, perfect the supporting regulations in order to overcome the negative effects, improve the distribution of supervision in order to solve the vacuum and confusion of the regulatory, adhere to the sluggish development of innovation in order to solve the problem. Finally, we should actively participate in international cooperation and international financial regulatory system overall design, in order to enhance the financial competitiveness, promote the development of financial industry in our country.