Research On The Development Of Offshore Financial Market In China

Offshore financial market (OFM) is the result of financial liberalization andinternationalization. Formed in the late of 1950s,now it has been the integral part of moderninternational financial system, and brought a lot of profits and conveniences to the hostcountries, even promoted the enormous leap of the local economies.As China's market economy system sets up, offshore financial market has to be underactive preparation and establishment in order to further enhance the status and competitiveability of our country in the international financial market. The establishment of offshorefinancial market will obviously accelerate the internationalization of finance in China, it canmeet the needs of all sides of society, and provide a place for financial supervisioninstitutions and commercial banks in China to participate into the international financialcompetition and cultivate competitive power. So we can prepare better for the overallopening under the require of the WTO. From a long term point of view, developing offshorefinancial market is the possible way to realize our strategic objective that building our owninternational financial center. However, it has to be noticed at the same time that theestablishment of offshore financial market produces both opportunities and challenges.There are still some restrictions and financial risks when we develop offshore financialmarket in China. The fact that finance has played a core role in modern economy requiresmeticulous consideration for the establishment and development of offshore financialmarket, the standardization and regulation to prevent risks in accordance with the adequateillustration and analysis based on the actuality of China.In this paper, the author will research on the process of offshore financial market andthe deep reasons of its development, conclude and analyze the experiences and lessons ofour former offshore financial businesses, learn from the experiences of foreign offshorefinancial markets, shed highlight on analyzing the necessity and feasibility of thedevelopment of offshore financial market in our country nowadays. In addition, the authorwill put forward some constructive suggestions about the regional option, mode orientation,businesses strategies, risk supervision and so on.