The Development And Influence Research Of Hong Kong RMB Offshore Financial Center

With China’s rapid economic development and increase of RMB foreign flow recent years, establishing RMB offshore financial center has become an inevitable trend. Hong Kong has excellent geographical location, financial center background, the close trade connection with mainland, and the talent advantage, these advantages made Hong Kong to be the first choice for RMB offshore financial center. In November2003, the people’s Bank of China announced that they will provide RMB liquidation services to Hong Kong’s banks which operate RMB business, since then RMB business has launched in Hong Kong. After nearly ten years development, Hong Kong has widened RMB business to RMB loans and bonds, non Hong Kong residents are allowed to be the main body of RMB deposit.Hong Kong RMB offshore financial center influent mainland’s economy a lot, and the effects have a big relationship with RMB offshore financial regulatory agencies, regulatory rules and the business, this article will analyze the influence based on the three points above. the effectiveness of monetary policy will be weakened to a certain extent for RMB offshore financial centre, Hong Kong and the mainland will format two interest rates and exchange rates, and this would lead to speculation, at the same time it causes greater challenge to financial regulation; but on the other hand, it has good effect to the internationalization of RMB, enterprises could "go abroad" better, trade also can be developed. Faced with the pros and cons of the two aspects, we need to expand the scope of RMB business, to develop bond market, RMB loan business, open stock market, promote the convertibility of RMB; China must develop reform of interest rate and exchange rate system, strengthen financial supervision, ensure the market operated in a stable environment, and give some policy support.