Research On The Linkage Relation Between Hongkong RMB Offshore Market And Onshore RMB Market

With the development of China’s economy in a good trend,the internationalization strategy of RMB has been advancing gradually,and the RMB offshore market has come into being,and has developed more and more mature in recent years,becoming the central market of offshore RMB business and laying a reliable foundation for RMB internationalization.In recent years,on the one hand,the RMB offshore market in Hong Kong is becoming more and more mature,and the onshore market is constantly reformed,and the interest rate marketization was realized in May 2015.On the other hand,the channels to connect two of markets are widening,in the previous channels to gradually relax the control in the same time,new channels have landed.In 2014,"Hong Kong and Shanghai Tong" Landing,in 2016 "Shenzhen Tong" in implementation and in 2017 "Bond" in the "North Pass" is also officially opened.The constant acceleration of the market itself,widening the market flow channels,so that we have the spillover effect between the market question,after all,if the offshore renminbi market will cause fluctuations in the offshore renminbi market,which means that,in promoting economic development and internationalization of the renminbi,while China’s economic and financial development needs to face a new reality problem,that is,the spillover effect of the offshore market will interfere with the stability of the onshore market,hinder the effective conduction of monetary policy in the market,the most serious situation,even in the late development of the renminbi pricing right to move out of the phenomenon.Based on this,this article will according to the latest market conditions,using newer and more comprehensive data samples to analysis two markets interest rate linkage situation and reflect the actual overall situation of the current market,to determine the present offshore and the two markets between the separation effect is significant,and whether there will be any spillover effect that threatens the stability of the renminbi in the onshore market? Based on the analysis results,the paper provides effective and feasible policy suggestions for the development of both market.The specific research contents of this paper are divided into four parts.Firstly,theinterest rate of the two markets is sorted and summarized.secondly,the linkage mechanism of the two markets is analyzed by means of the Unicom channel.Next,according to other currencies in the offshore and offshore market linkage,as well as the actual analysis of the foregoing,to make a preliminary judgment on the mutual spillover of the RMB offshore market and the RMB onshore market in Hong Kong.Finally,using VAR model to analyze the linkage of two market interest rates,according to empirical test results,to judge the strength of the linkage between the market and the reasonable degree of the prejudgment.