Study On The Offshore Financial Market Supervision Legal System Of Our Country

As a product of the financial liberalization and economic globalization, offshorefinancial market has decades of history, but has become an important part of the modernfinance after rapid development. But offshore financial market’s strong international factorsmake it has higher risk factors than the traditional financial market. If lacking of supervision,it will be possible to produce a series of negative effects to one country’s domestic economyand international economy. The Asian financial crisis which erupted of20thbecause of theweak supervision in offshore financial market is an example. Thus, strengthen the offshorefinancial market supervision becomes an important question in various countries’ financialmarkets development process. However, offshore financial market itself characteristics makeit is regulated by various supervision, and it not be unilaterally imposed by a complete control.The characteristics of complex regulation relationship and can’t be clear division becomes adifficult problem in various countries’ offshore financial market supervision.After exploration, countries are realized that through the design of offshore financialmarket supervision legal system to strengthen the offshore financial market supervision to thedevelopment of its offshore financial market and international financial stability is veryimportant. The basic content of offshore financial market supervision legal system includessupervision mode, regulator, market access system, business management supervision systemand the risk supervision system. Overview of the countries and other regions in which theoffshore financial markets are relatively mature, they almost construct their offshore financialmarket supervision legal systems through the design of such aspects.Constructing offshore financial market in our country could provide a new channel forraising funds and improve the management capabilities of domestic financial institutions thusenhance the overall financial strength. After experiencing the process of “development,suspension, and recovery”, at present, China’s offshore financial market is keeping smoothdevelopment under the attention of the financial department. However, for China, thefinancial system is relatively weak and the contradiction between financial innovation andfinancial supervision is particularly outstanding, developing offshore financial market is alsofacing many significant risks. In view of this, the establishment of a set of a line with China’snational conditions and workable supervision legal system is particularly urgent. But now,there is no special law to regulate offshore financial market in our country. The “Measures for the Administration of offshore banking business” with the “Measures for the Administrationto implement offshore banking rules” promulgated by the State Administration of ForeignExchange on May13,1998as the core, some regulations, approvals and notifications as thesupplement, constitute our offshore financial market supervision legal system, which providesthe framework on China’s offshore financial business management and plays a role in thesupervision of offshore financial market in certain period. However, along with thedevelopment of domestic economic and financial environment, development environment offinancial market in our country also has a very big change, China’s offshore financial marketsupervision legal system in many ways have been hard to adapt to the development of theoffshore financial business and the offshore financial market effective supervision also can’tbe achieved and have set back the development of China’s offshore financial market.This thesis is divided into four parts. The first part briefly discusses the basic conceptdefinition, characteristics and reason of offshore financial market and analyzes the necessity,the position and the particularity of the offshore financial market supervision. The second partstates the basic content of offshore financial market supervision legal system, and uses themethods of standard analysis and comparative analysis to analyze and compare the differentpractices of offshore financial market supervision legal systems of foreign countries and otherareas in supervision mode, regulator, market access system, business management supervisionsystem and the risk supervision system several aspects to find out the similarities and thedifferences and concludes some revelatory practices which could perfect China’s offshorefinancial market supervision legal system. The third part through analyzing China’s offshorefinancial market and supervision legal system and explicates its existing defects and problemswhich make the offshore financial market effective supervision can not be achieved. Thefourth part draws lessons from the offshore financial market of foreign countries and otherareas to put forward scientific and reasonable ideas on the existing problems of the offshorefinancial market regulatory legal system in China to construct a set of offshore financialmarket supervision legal system according with the situation of our country.