A Study On The Synergetic Effects Of Hong Kong RMB Offshore Market And RMB Cross-border Settlement

Constructing the Hong Kong RMB offshore market is an important measure for the internationalization of RMB,for which the cross-border settlement of RMB is a strategic starting point.Existing research shows that the mutual influence between the two has become more profound,and the interaction has become more frequent.Hong Kong has experience in developing offshore markets.With its well-developed financial foundation and superior geographic location,the RMB offshore business has developed rapidly.The market not only connected the return channel for funds between offshore and onshore markets,but also provided an "experimental field"for the pilot of Renminbi cross-border settlement.The competition and synegetic effects among various RMB businesses in Hong Kong has improved the operational efficiency of the offshore RMB market.Under the background of RMB internationalization,the sharp increase in RMB demand stimulated the development of RMB cross-border settlement.As a strategic starting point for the internationalization of RMB,it is crucial to the development of the RMB offshore market in Hong Kong,which not only brings a large amount of deposit funds to the Hong Kong market,but also promotes various types of offshore RMB business by guiding cross-border circulation of funds and circulation both inside and outside the country.In the process ofgradual development of RMB cross-border settlement,the channel for the circulation between offshore and onshore funds has continued to expand,the two-way flow of funds has been more smooth,the cross-border circulation of funds and the cyclical effect in the offshore market have increased,the effect of extracorporeal circulation has been prominent,and the mobility of Hongkong RMB offshore market has been further enhanced.This paper analyzes the business structures of the Hong kong RMB offshore market and RMB cross-border settlement,and studies the synegetic effects between the two through a combination of qualitative analysis and empirical testing.The qualitative analysis result shows that under the influence of policies and market voluntary competition,the offshore and onshore business was in mutual competition,collaboration and infiltration.The interaction between RMB offshore market in Hong Kong and RMB cross-border settlement fits in with the thought of synergetics,which is a process of material and energy exchange.Accordingly,based on the theory of synegetic effects,this paper regards the RMB offshore market in Hong Kong and RMB cross-border settlement as two sub-systems under the composite system,and empirically examines the synegetic effects effect between them.Firstly,the ADF test,cointegration test and Granger causality test were used to analyze the relationship between the RMB offshore market in Hong Kong and RMB cross-border settlement,which shows that the impact of the two is a long-term equilibrium.Secondly,a synegetic effects model of composite systems was constructed to test the synergies between the two.The conclusion indicates that there is a synergistic effect between the RMB offshore market in Hong Kong and RMB cross-border settlement,but there is an imbalance in the operation of the subsystems,and the synegetic effects between them is not high.Finally,this paper proposes to speed up the construction of the RMB offshore market in Hong Kong,deepen the market-oriented reform of offshore and onshore RMB interest rate,adjust the path and mode of RMB cross-border settlement business and perfect the policy recommendations in four aspects of the circulation of offshore and onshore funds,so as to provide monetary authority with the theories and practice for studying issues related to the RMB offshore market in Hong Kong and RMB cross-border settlement.