Research For Present Situation And Development Solutions Of Offshore Banking In China

Offshore financing comes of Euromarkets developed from 5^th decades of last century. It is involved by non residents and takes freely convertible currencies as transaction tools under highly internationalized finance administration system and favorable tax system. In the past half century, that the growing up of offshore financing could be regarded as a very important innovation and the development of offshore financing directly pushed the freeness procession of global financing. The scale of global offshore money market and bond market turned large gradually and the innovation of offshore financing tools emerged in endlessly. Not only did the traditional financing center such as London, New York set up its own offshore center, but also more and more new market countries step up to take part in international financing competition, raise the ratio of financing export, promote economy development by developing its own regional offshore center.Correspondingly speaking, offshore financing development got behind in our country. In 1989, that the people's bank of China approved China Merchant Bank headquarters to deal with offshore banking in Shenzhen indicated the start of offshore financing development in our country. Since the low opening degree and limited supervision ability of financing in our country, the development form of offshore financing is comparatively simple. Besides B stock transaction involved by non residents had offshore character, basically the main form of offshore financing in our country is offshore banking mainly kept by domestic banks up to now. Therefore, it has definite practical meaning for pushing offshore financing development to research offshore banking present situation in our country.Now learning of offshore financing in our country mainly focuses on foreign offshore centers and offshore markets and there are fewer articles to research domestic offshore banking present situation. This study tries to analyze the external reasons to push persistent development and problems to impede further offshore banking development in our country, and give constructive solutions based on research for offshore banking present situation.This research finds that the development of offshore banking in our country is subject to internal and external reasons. The internal reason is mainly that the products and service innovation provide offshore banking development with efficient supply. The external reasons include not only the multinational development of domestic and foreign enterprises, but also the target of internationalized development of domestic commercial bank.Based on research for present situation of offshore banking in our country, this study also tries to discuss and assume the project of developing offshore banking in Shanghai in the near future. Shanghai is the best region for developing offshore banking in China. On the one hand, Shanghai has potential market and external conditions to develop offshore banking. On the other hand, it is needed for shanghai to construct international finance center under strategic layout of macro finance in our country. It is necessary for Shanghai to take full use of free port advantage of Yangshan tax free zone to set up offshore banking experimental area there pushed by government policies.