The Development Of RMB Offshore Market In Hongkong And Its Impact On The Onshore Market

After forty years of reform and development of economy in our country,the economy with more than eighty trillion yuan,the amount of international trade and are one of the world’s top,so the demand for the international community is also increasing.Since the 2008 financial crisis,many people think the dollar as a single international currency on the stability of international financial risk,more and more people call for building a more diverse international monetary.As an important engine of the global economy in our country,because of the economic and financial factors,introduced the process of RMB internationalization,but this process needs to be done step by step,the establishment of the offshore renminbi market is an important role,as one of the important international financial centre,Hong Kong is fully capable of the role and obligations,so the development of offshore RMB market in Hong Kong to particularly important.In 2003,our country began to prepare for the construction of the offshore market,So far,there are 15 years of history,although the time is not very long,but the speed and scale of the development of the Hong Kong offshore market has reached a new height.Since the RMB business has been carried out in Hong Kong,the deposits,loans and bonds of the RMB have been expanding in general,and the scale and scope of cross-border trade is also not.The break is enlarged,but,in the process of construction of the offshore RMB market in Hong Kong,as the market is not perfect,the mechanism is not perfect,relatively independent of the offshore market will have effect on the onshore market,what effect will be a focus in the study of this article.This paper first reviews the development of the offshore market by literature review.On the basis of understanding from the early stage of construction to the present development,this paper analyzes the current situation of the offshore market and the interaction between the bank market,and introduces the difference between the exchange rate and the interest rate in the bank market,and analyzes the arbitrage behavior resulting from it.In order to better solve the impact of these arbitrage on the bank market,the following paper put forward suggestions to improve the cross straits market,these suggestions can not only better solve the problem,but also better promote the construction of offshore financial market.