A Study On The Legal Problems Of Financial Reform In Shanghai Free Trade Area

The current International monetary system exposed its inherent defects after the outbreak of the global financial crisis. The research on getting rid of the hegemony of the US dollar and establishing a new international monetary order has become a hot topic. It is imperative for China to realize the internationalization of RMB to better participate in worldwide economy, trade and financial competition, and the first step should be the reform of the domestic financial system. Since the founding of the Shanghai Free Trade Zone, a series of effective financial reform policies attempt have been made in the aspects of establishing free trade account system, expanding the use of the RMB in cross-border trade and investment, promoting the marketization of interest rate and reforming the management of exchange rate. By exploring a fair, efficient and legal mechanism in the free trade zone, the government tries to promote the maturity, openness and freedom of the financial market in the precondition of the controllable risk and finally paves the way for the RMB internationalization.This paper comprehensively reviews the latest financial regulations and laws related to the internationalization of RMB in Shanghai Free Trade Zone, analyzes the profound impact that financial openness and innovation may have on the process of the RMB’s internationalization, and then proposes some advice on the further study on subsequent financial reform in the free trade zone and internationalization of RMB.