Suggestions on Offshore Financial Center Path Construction and Risk Prevention in Shanghai Free Trade Zones

【Abstract】

This issue of Key Reference publishes an article entitled Suggestions on Offshore Financial Center Path Construction and Risk Prevention in Shanghai Free Trade Zones. The article shows that recently, Zhou Xiaochuan, Governor of the People’s Bank of China, underlined that it is necessary to insist on maintaining price stability and systemic financial risk prevention and control as the core objectives of the current financial macro control. The construction of RMB offshore financial centers is an important direction of financial reform in Shanghai free trade zones. Under the guidance of the overall plan, we must further improve the path planning for the construction of offshore financial centers in Shanghai free trade zones and the preventive work in the reform shall be the focus of Shanghai’s financial field. The article suggests that the internal and external separation model shall be adhered to at the early stage of the construction of offshore financial centers in Shanghai free trade zones. With the increase in the degree of the openness of domestic capital projects, the increase in the degree of domestic interest rate and the exchange rate marketization, and improvement of relevant regulatory systems, the internal and external separation model for offshore financial centers in Shanghai free trade zones will slowly change to the penetration model.