As of December 29, 2019, there are many offshore centers in Hong Kong, Canada, Western Australia, London, Singapore, Paris, Luxembourg, Frankfurt, and Seoul.

There is also a new RMB offshore center that is currently cooperating.

Chen Yunxian, Vice Governor of Guangdong Province, suggested in Beijing on the 8th that China should establish an onshore transaction settlement center for RMB offshore business in Guangdong or Shanghai Free Trade Zone, and use this as the center to take multiple measures at the same time. Collaboratively promote the internationalization of the RMB, the internationalization of local enterprises and the internationalization of domestic banks.

On the 8th, Chen Yunxian attended the discussion of the "Global Financial Governance and China's Financial Opening" sub-forum at the 2015 International Financial Forum Annual Meeting. Guangdong Province, where he is located, ranks first in GDP in China and is also China's largest exporting and importing province. In 2014, Guangdong Province's exports and imports each exceeded one trillion US dollars.

He believes that to achieve the second-stage goal of RMB internationalization, the first task is to develop the RMB offshore financial market and build a RMB currency zone with the RMB offshore center as the radiation.

He suggested establishing an onshore transaction settlement center for RMB offshore business and providing services in five aspects.

First, promote the use of RMB pricing and settlement by enterprises in foreign trade and investment, and create a comprehensive service platform for RMB going out and flowing back.

Second, carry out cross-border RMB business and product innovation, and establish a cross-border RMB investment and financing service system that serves the real economy, connects Hong Kong and Macao, and connects the world.

Third, introduce overseas market entities to carry out cross-border transactions between the offshore and onshore RMB markets, becoming the main hub for connecting the offshore and onshore RMB markets.

Fourth, it has become the market benchmark for the formation of the RMB exchange rate.

Fifth, allow financial elements to be allocated without barriers through financial arrangements in the onshore transaction settlement center for RMB offshore business.

Extended information:

The RMB offshore market is of great significance to the RMB becoming an international currency:

1. Major international currencies must be traded 24 hours a day. When we sleep, in the time zones of London and New York, there must be offshore markets trading, so that local investors and companies that use RMB for trade settlement have a platform to trade RMB.

2. Major international currencies must have a large number of third-party transactions. Third-party transactions mean that the two counterparties involved in the transaction have nothing to do with China.

3. A large number of non-residents require to hold the currency or currency assets of the country outside the issuing country. For example, 70% of non-U.S. residents hold U.S. dollars invested in offshore markets outside the U.S. because they are worried that their assets will be frozen in the domestic market.

4. In terms of providing liquidity for global transactions, the offshore market can create liquidity through the multiplier effect and have less impact on domestic monetary policy. The U.S. dollar in the offshore market now and the RMB in the offshore market in the future will have a multiplier effect. Create new liquidity abroad.

Baidu Encyclopedia-RMB Offshore Market

China News Network-The Vice Governor of Guangdong proposed the establishment of an onshore transaction settlement center for RMB offshore business