Study On Capital Flows And Risk Control Of Hainan Off-shore Financial Market

As one of the international financial innovation,off-shore financial market develops with achieving optimal allocation of resources in global scale and driving the development of local economy. In2010, State Council promoted<Opinions of construction of Hainan International Tourism Island>which firstly explicit point out Hainan province get the qualification of offshore financial. Hence, Hainan is faced with a new opportunity of financial innovation.However, Hainan off-shore financial market is still in infancy and immature. Based on Hainan’s geographical advantage, stable macroeconomic environment and the government’s policy support and such similar driven factors, the development of offshore financial market is imperative.Under this premise, the paper tries to find the way to maintain the development of Hainan off-shore financial market by studying the risk factors.Firstly,this article analyze the background and present situation of Hainan offshore financial market. Secondly, it presents the characteristics and the potential risk of capital flows in Hainan offshore financial market.Thirdly,after conclued the risk control experience of international offshore financial market, this article put forward constructive suggestions to control the potential risk of capital flow in Hainan offshore financial market. Seven suggestions was presented:Firstly, strictly regulating the business model of offshore financial market in Hainan; Secondly, polishing Hainan off-shore financial market’s law system;Thirdly, polishing the standard of entering and quiting of offshore financial market system in Hainan; Fourthly, establishing the information system; Fifthly, strengthening the supervision of the offshore financial market capital flows in Hainan; Sixthly, improving the external supervision system of offshore financial market in Hainan; Seventhly, promoting the risk management ability of offshore financial institutions in Hainan.