Research On The Relationship Between Offshore Financial And The Internationalization Of The RMB

Offshore finance plays an important role in the prosperity of international financial industry with the increasing development of globalization of international financial industry. The weakness of international monetary system has been exposed as the crisis of global finance and economy caused by subprime crisis in U.S.A. Nowadays the Chinese financial industry emphasis gradually the latent defect of international monetary system and systematic risk, especially for the policy of quantitative easing launched by FRB and the risk of depreciation of US Dollar. The Chinese government positively takes part in the reformation of international monetary system, which benefit to process the financial revolution and control the risk of exchange rate in Chinese foreign currency reserved.In this context, Chinese government launches a series of solutions. One of them is the establishment of China(Shanghai) free trade area. The purpose is to enhance the innovation of financial industry and to seek institutional reform. In fact the offshore finance had been developing more than decade in China. However the developing speed is low and the coverage area is small. The opportunity that the offshore financial services develop in free trade area is becoming with the globalization, which result in the entire development of offshore financial services. At the mean time, the development of cross-border business of RMB will affect deeply to the development of Chinese financial industry. In a word, speeding up financial reform and RMB internationalization is not only a measurement for the crisis, but also benefit to the development of Chinese economy in the21st century.At present, the research of offshore finance and RMB internationalization contain three aspects. Firstly the main content of offshore finance market, including concept of offshore finance market, the development process, risk and regulation. Secondly including concept of currency internationalization, characteristic, the development condition and circulate pattem.Thirdly including the develop reason of RMB internationalization, mechanism, the control of risk. The special analysis of RMB internationalization focuses on the research of occurrence, development and current situation. But these studies lack deep analysis and specific advices for the relationship between offshore finance and RMB internationalization. Similarly they neglect the specific of superior currency internationalization affected on offshore finance and how to realize RMB internationalization. The study of relationship between offshore and RMB internationalization completes the theories the development of RMB offshore and RMB internationalization. At mean time it benefit to the development of RMB offshore market in China(Shanghai) pilot free trade zone and financial reformation of Chinese mainland.This thesis based on RMB internationalization, according to regional economic theory, analyzes the relationship between offshore finance and RMB internationalization. Several typical states’currency internationalization is compared through case analysis method. Besides that the thesis studies the role of offshore finance in the internationalization of currency, which is beneficial the finance innovation of China(Shanghai) pilot free trade zone.