The Analysis Of The Factors Affecting The Scale Of The Offshore CNY Market In Hongkong

Since reform and opening up，the economic strength of China continues to grow,China economy and the world economy are increasingly close, the demand of thecirculation of RMB in the international market continues to increase; the establishment ofan offshore CNY market has become a necessity. The financial markets of Hong Kong iswell developed, economic strength is abundant, and its geographical location is a uniqueadvantage, as a result, Hong Kong become an inevitable choice of CNY offshoremarket.Hong Kong’s offshore CNY market is the first offshore RMB center, it plays anvery important role in promoting the process of internationalization of the RMB.Therefore, analyzing the factors affecting the development of offshore CNY market scale,is beneficial to the future development of Hong Kong’s offshore CNY market, and it hasimportant practical significance to speed up the process of RMB internationalization.This paper studies the factors which influence the development of Hong Kong’soffshore CNY market scale, According to measuring method, we make an empiricalanalysis of these factors, then put forward the factors which is benefit to the developmentof Hong Kong’s offshore CNY market, The paper is consist of five parts:The introduction mainly clarifies the background and significance of the study,literature review, research content and methods, and the innovation of this paper andshortcomings. The first chapter describes the theoretical foundation of Hong Kong’soffshore market, clarify the reasons for the establishment of Hong Kong’s offshore RMBmarket on the theoretical level. The second chapter describes the overall situation ofHong Kong’s offshore CNY market, and describes the connotation and the developmentbackground of Hong Kong’s offshore CNY market, to sort out its development process,and analyze their development status. The third chapter is using measuring method tomake an empirical analysis of these factors, then conducive to the factors which isbenefit to the development of Hong Kong’s offshore CNY market. The fourth chapteranalyzes the results of measurement, then puts forward some policies andrecommendations of Hong Kong’s offshore CNY market.The conclusion of the study is:RMB spread has a significant and positive impact on the Hong Kong’s offshore CNY market scale; the higher level of domestic financialdeepening, the more conductive to the development of Hong Kong ’s offshore CNYmarket; the more developed of domestic financial markets, the less conducive to thedevelopment of Hong Kong’s offshore CNY market; the better of cross-border RMBtrade settlement development, the more conducive to the development of Hong Kong ’soffshore CNY market; the impact of GDP to Hong Kong’s offshore CNY scale ispositive.