Study On The Development Of Hong Kong’s RMB Offshore Market

The offshore RMB market in Hong Kong began in the required of convertible currency travelling Hong Kong individually. So it will be a certain spontaneity and dispersion of ingredient. However, The financial crisis coming, Dollar assets devaluation resulting in their credibility is weakened seriously. And China, not only the downward pressure on the domestic economy is very large and the abroad export market share has shrunk severely, as the largest country suffer miserable because of possessing the dollar reserves. Therefore, in order to revitalize the domestic economy and stimulate overseas markets, the Chinese government pushing the RMB internationalization strategy. In this process, The offshore RMB market in Hong Kong as the frontier of China’s National strategy and the bridgehead of strategic level, It goes without saying that its irreplaceable importance.Hong Kong’s offshore RMB market in the early formation, because it’s scale is very small and it’s impact is very weak, its potential risks are not so obvious to everyone in the eyes. But with the introduction of a series of preferential policies and measures of the Chinese government, Hong Kong’s offshore RMB market’s scale of expanding prompt its international influence, but the attendant problems are relatively increased. For example,the liquidation channels can not meet the market demand resulted in the insufficient of offshore market breadth, and a serious imbalance of the RMB deposit and loan structure in the primary market and the performance is less active in the secondary market, so that it begain seriously affecting the deepening development of offshore RMB market; on the market liaison mechanism between Hong Kong and the mainland, because the offshore RMB financial products is limited, resulting in the jaming of backflow mechanism,and lacking of the momentum with Hong Kong offshore RMB market; on follow-up supervision, the conflict resulted in regulatory supervision model standout and the fault zone regulatory vacuum exposed to the pepole’s field of vision, At the same time, the long regulatory issues are prominent. Then discusses the development stage to the existence of problems and deficiencies offshore RMB market in Hong Kong, has forced it in a "bottleneck" and seriously affect their "quality" development. At the same time, based on the analysis of Hong Kong’s RMB offshore market own problems, and then we discusses the influence of Hong Kong’s RMB offshore market for our monetary policy. In a word, the Hong Kong offshore RMB market for economic transformation and development of the country under the new normal inject "fresh blood", while its overall risk is controllable.Therefore, Hong Kong needs to seize the opportunity of a century of hard to find, not only to improve the offshore RMB business in the micro, but also to identify the location of the macro itself. In the fierce competition can only multiple offshore financial centers in the world, seizing the opportunity to stand out and consolidating its leading position as an international financial center.