International financial markets

In the international field, international financial markets are very important, including the international transfer of goods and services, the international transfer of capital, and the export of gold. All aspects of international economic exchanges, such as the purchase and sale of foreign exchange and the operation of the international monetary system, are inseparable from the international financial market. New financing methods, investment opportunities and investment methods are emerging in an endless stream in the international financial market, and financial activities also override the traditional essence. On top of economy, it has become the dominant factor in promoting world economic development. Narrow sense

A place for international long- and short-term capital lending.

In a broad sense

refers to places engaged in various international financial business activities. Such activities include between residents and non-residents or between non-residents and non-residents, and the general concept refers to a broad concept. For example: there are short-term capital markets, long-term capital markets, foreign exchange markets, gold trading markets, etc. The international financial market refers to the market for international financial coordination and capital transactions.

Function: The role of market mechanism; the role of guarantee; the role of international settlement center; the role of regulating the balance of payments; the role of providing funds needed for economic development.

Model: natural evolution and artificial creation. Generate

1. International exchanges increased, and international trade using currency as a medium developed. In the Middle Ages when credit was underdeveloped, the coin exchange industry was born. 2． The development of exchanges, the emergence and development of credit, produced international lending, and rapidly expanded and concentrated to create large international financial centers such as London and New York.

Essence

Before World War II, the financial markets and financial centers of various countries were essentially markets, that is, extensions of the market, manifested as the export of capital, even if the London International Financial Center was not The British can issue bonds in the market to raise funds. This is international. Of course, this market is governed by financial regulations, laws, and decrees. It cannot be called an international financial market in the true sense. It is a traditional international financial market. Called the on shore international financial market (On shore Financial Market).

Process

1. Before the First World War. The British Industrial Revolution was the earliest (in the early 19th century and completed in the 1830s). The economy developed early and rapidly. Its external expansion plundered a large amount of huge profits from overseas colonies. It had strong financial strength. GBP gradually became the world's main settlement currency. Becoming a currency overlord, London took the lead in developing into an international financial center.

2． World War II. Britain participated in the war, and its economic power was greatly weakened. In addition, many colonial countries were independent and the colonists of the world were fighting for carving up. However, the United States did not participate in the war. It made war fortune and its strength soared. The U.S. dollar gradually replaced the pound. Switzerland, as a neutral country, had an economic , currencies are relatively stable, and the three major international financial centers of New York, Zurich and London have gradually formed.

3． After the war, the economies of various countries recovered and developed rapidly, forming international financial centers such as Frankfurt, Luxembourg, Japan, and the Asia-Pacific region. Especially with the rapid rise of Japan, Tokyo has become the three major international financial centers after London and New York. International financial markets can be divided according to different classification methods.

(1) According to different nature:

Traditional international financial market: engaged in international credit and international bond business in the currency of the country where the market is located. Transactions mainly occur between residents and non-residents of the country where the market is located. between residents and are governed by the financial laws and regulations of the government of the country where the market is located.

Offshore financial market: Its transactions involve all freely convertible currencies. Most transactions are conducted between non-residents of the country where the market is located, and business activities are not subject to the rules and regulations of any country's financial system. jurisdiction.

(2) Divided by the length of financing period:

International money market: refers to the trading market where the loan period of funds is within 1 year (including 1 year), or short-term funds market.

International capital market: refers to medium- and long-term credit or securities issuance with a loan period of more than one year, or long-term capital market.

(3) Classification by type of business:

International capital market: It is an international financial market in a narrow sense, that is, an international capital lending market. It is divided into short-term credit market and long-term credit market.

International foreign exchange market: a place composed of various foreign exchange providers and demanders, where activities such as foreign exchange buying and selling, foreign exchange fund allocation, and foreign exchange fund clearing are conducted. The main business includes foreign exchange spot trading, forward trading, futures trading and options trading. London is the world's largest foreign exchange trading center. The world's more important foreign exchange trading markets also include New York, Zurich, Frankfurt, Tokyo and Singapore.

Securities market: It is a market for the issuance and trading of securities such as stocks, corporate bonds, and government bonds. It is an effective intermediary between long-term capital investors and demanders and is an important part of the financial market.

International gold market: refers to the market that specializes in gold trading.

(4) Different methods of delivery of financial assets:

Spot market: refers to the total of spot trading activities and venues.

Futures market: The main types of transactions include foreign currency futures, interest rate futures, stock index futures and precious metal futures.

Options market: It is a place where investors conduct options transactions.