Institutional Embededness Of Cayman Offshore Financial Market

The Free Trade Zone policy is a historical opportunity for Hainan to build an offshore financial market that is in line with international standards.On the basis of reviewing the institutional embeddedness theory of new social economics and the existing domestic and foreign literatures,this paper analyzes the five dimensions of political endowment,international relations and formal system under the political system,legal system and supervision system under the informal system.Institutional factors affecting the development of offshore financial market in Cayman;then,through the research on the development history and future development trend of Cayman offshore financial market,the paper analyzes the embedding between formal system,informal system and Cayman offshore financial development.The mechanism of action,that is,the development of Cayman offshore finance is embedded in various institutional dimensions.The geographical endowments under the informal system,the international relations and the political system under the formal system,and the legal supervision system have affected Cayman offshore to varying degrees.Financial development,this paper believes that superior geographical endowments,good international relations,loose political system and mature and advanced legal supervision system have obvious promotion effects on offshore financial development;once again,embedded by Cayman offshore financial development Sexually inspired,this paper compares the Hainan Free Trade Zone with similar natural conditions,and analyzes the deep Hainan's offshore financial development's advantages,development status and existing problems,Hainan's current development of offshore finance has location advantages and policy advantages,but also has a late start,imperfect legal supervision system and imperfect financial service system.Lack of constraints on offshore financial professionals.Finally,based on the establishment of the free trade zone and the offshore financial market,combined with the institutional experience of the development of offshore financial market in Cayman,this paper proposes corresponding policy recommendations for the institutional arrangement of offshore finance in Hainan Free Trade Zone.