Research On The Linkage Between RMB Offshore Market And Onshore Market

Since 2015,a series of black swan events such as the international economic environment ups and downs,the Brexit,the Federal Reserve to raise interest rates,in the new situation on the status quo of the offshore market combing,offshore market and the relationship between the shore market changes the analysis of the problems existing in the offshore market and the development of the onshore market under the linkage,which helps to deal with the relationship between the offshore market and the onshore market,prevent and resolve the gradual opening of the onshore market capital project of economic and financial risks.On the basis of combing the literature,defining the concept and summarizing the theory,this paper p the development of RMB offshore market,deposits and loans,bonds and cross-border trade settlement,and introduces other RMB offshore market/And secondly,it summarizes the channel between the offshore market and the onshore market and the linkage effect between the RMB offshore market and the onshore market from the angle of interest rate and exchange rate.On the basis of the theoretical analysis,the offshore foreign exchange market(CNH market),offshore RMB foreign exchange market(RMB),the offshore foreign exchange market Market)and the offshore RMB exchange rate data on the forward foreign exchange market(DF market).The empirical results show that there is a two-way price spillover and fluctuation effect between the Hong Kong offshore market and the onshore market.Through the dynamic correlation test of DCC-GARCH model,it is found that the correlation between the offshore market and the inter-bank market fluctuates greatly since the exchange reform.After the abnormal fluctuation,the dynamic correlation coefficient is close to 1,indicating that the correlation between the two markets is strong,combined with the lessons of the offshore market construction in Thailand.The offshore market in the context of the increasing links China to the onshore market.The development of existing problems in the analysis and summary is proposed to improve the RMB offshore market and the inter-bank market between the Unicom mechanism in order to build the RMB market and onshore market financial business innovation mechanism,improving the RMB offshore market and inter-bank market liquidity coordination framework and other proposals to promote the healthy development of offshore markets.