Study On The Feasibility Of Establishing Offshore Financial Center For RMB In Taiwan

As economic globalization, the continuous innovation in the international financial business, offshore financial market is a historic innovation. It is important for the offshore financial center country economic development, promoting the internationalization of economy and finance plays an important role in. The development of offshore financial center is a new subject in the new trend of the international financial competition of finance industry in china. About whether China should establish an offshore RMB financial center and the location problem in recent years has been concerned by experts and scholars, is still there, did not agree. At present in Hongkong have set up offshore financial center for RMB, for the second siting of offshore financial centres different opinions, some scholars believe that can consider the establishment of RMB Offshore Financial Center in Taiwan.As the Taiwan region has a huge volume of trade with China, Taiwan trade surplus on the Mainland, while Taiwan top direct investment on the Mainland, a year with large numbers of Taiwan investment to the Mainland, there is a natural return mechanism. Through the mechanism of the natural return, don’t have to change a dollar, will naturally make the formation of Taiwan an offshore RMB centre. With the expansion of RMB business, Taiwan offshore financial center goal of getting closer. And if Taiwan became the RMB Offshore Financial Center, in addition to the development of can expand RMB bond market, bond market and foreign assistance on both sides, is bound to promote the process of internationalization of RMB. The expert thinks, Taiwan to carry out the business of RMB is a milepost of cross-strait financial communication, the current RMB cross-border trade settlement is rapidly advancing, cross currency swaps are agreements. All these to the cross-strait financial cooperation and establishing RMB Offshore Financial Center in Taiwan to provide the new opportunity. Taiwan has established its play a decisive role in the development of RMB business on location. As more financial institutions and enterprises to use RMB as the settlement currency, is expected to Taiwan business potential development of RMB best.In this context, using both qualitative and quantitative methods, made a research on establishing RMB Offshore Financial Center in Taiwan. In this paper the basic theory of offshore financial market as a screen, put forward the basic conception of establishing RMB Offshore Financial Center, in order to provide some guidance for future activities. This paper firstly summarizes the basic connotation of offshore financial center and the related financial theory, the development process and the various models of the offshore financial centres are briefly summarized, and then from the current situation, Chinese current capital control RMB scale daily expansion, push the process of internationalization of the RMB, analyses the necessity of establishing RMB offshore the financial center of China’s actual situation three aspects, using the analytic hierarchy process and fuzzy evaluation method to make the importance of elements of the establishment of RMB offshore financial center need to consider, and in the horizontal comparison with Shanghai, Shenzhen that establishing RMB Offshore Financial Center in Taiwan advantage and puts forward the framework of the protection; the national financial security angle, summarizes the Taiwan set up various kinds of risks of offshore financial centers may face, and puts forward corresponding suggestions of risk supervision...