ABSTRACT
There are two main challenges in general. First is how to establish an offshore RMB (CNH )market successfully. Based on the experience of Hong Kong and London, we must make efforts in products, institutions, technical support, and legal framework to achieve a faster development and thus promote the internalization of RMB actively. The other challenge is how to face the negative influences arising from the offshore CNH market objectively. According to the international experience, offshore markets might not only bring more risks to the private sector but also disturb the finance and taxation policies and currency circulation and even do harm to the entire economy. In summary, to establish offshore markets, we should forge ahead with determination and cautiousness as well.
