The Research On The Impact Of Financial Openness Of Shanghai Free Trade Zone

After the outbreak of financial crisis,China was excluded from some higher standard multilateral trade agreements such as TPP?TTIP?PSA.Approved by the State Council,China(Shanghai)Free Trade Zone(hereinafter referred to as Shanghai free trade zone)was formally established on September 29,2013.This is an essential step on the way that promoting reform by way of opening up and upgrading Chinese economy.Its main purpose is to promote the development of real economy and the facilitation of trade and investment by the financial openness and innovation,and to form the experience can be promoted and copied.Firstly this article explores the influencing mechanisms of the financial openness of Shanghai FTZ to the development of economy by the theory of financial liberalization,the theory of platform,the theory of growth pole,then analyzes the direct influence and indirect influence of financial openness of Shanghai FTZ.The theoretical studies show that there are four influencing mechanisms such as adjusting the allocation of resources,facilitating trade and investment,forming industrial conglomeration and adjusting the structure of trade.The direct influence is embodied in that the financial openness of Shanghai FTZ could promote the marketization of interest rates,deepen the reform of foreign exchange management system,promote the opening of capital account,expand the scale of cross-border RMB settlement and promote the construction of offshore financial center,but at the same time,the negative influence would result in the funds flow risk caused by the dual system of interest rate and exchange rate in and out Shanghai FTZ,which would increase the difficulty of financial regulation;The indirect influence is embodied in that the financial openness of Shanghai FTZ could accelerate the development of real economy,promote the development and the structural adjustments of trade,accelerate the development of shipping industry and shipping finance industry,improve the ability of scientific and technological innovation and facilitate the investment and financing of scientific and technological innovation.Further,this article analyzes the financial openness process of Hong Kong,Singapore,Thailand and Mexico,the result shows that the premise of financial openness is stable economic foundation,at the same time,the government must have strong ability of macroeconomic regulation and control and a relatively sound financial regulatory environment.Then,using the statistical data of Shanghai financial openness,this article establishes ARIMA model and VAR model to make empirical study.The research indicates that the financial openness of Shanghai FTZ has deepened the degree of financial openness in Shanghai,in which the total amount of foreign currency deposit and loan makes the biggest contribution,the bigger one is the amount of cross-border RMB settlement,the smallest one is the amount of FDI;There is a correlation between real economy,trade,shipping industry,scientific and technological innovation and financial openness,and the financial openness could promote the development of real economy,trade,shipping industry and scientific and technological innovation and financial openness.At last,this paper puts forward that Shanghai FTZ need to build the system that could connects with the rules of international trade and investment and deal with the relationship between "copy and promotion" and the construction of Shanghai IFC and so on.At the same time,the experience of promoting the process of financial openness rely on real economy,building the model of "finance and scientific and technological innovation " should to be promoted to other FTZ,which can provide experience and reference.