Introduction: The word "offshore" comes from the English word offshore, which symbolizes that ocean ships leave the port for ocean trade.

Offshore RMB business refers to RMB deposit business outside China. The business where both parties are non-residents is called offshore financial business.

Offshore finance refers to the financing activities carried out by financial institutions located in a country that have nothing to do with the country's financial system and are not controlled by its financial laws and regulations. For example, a trust and investment company is headquartered in the Bahamas, but its business activities are to absorb US dollar funds from European residents or other non-US residents, and then invest these funds in European residents or non-US residents. The company is engaged in offshore financial activities. Strictly speaking, offshore finance is also financing that is not regulated by the domestic banking law of the authorities, regardless of whether these activities are carried out in China or abroad. For example, the international banking facility (IBF) in the United States and the business activities in the offshore financial market in Tokyo belong to offshore finance.

Offshore bank: also known as offshore unit, it is a bank or other financial institution located in an offshore financial center. Its business is limited to contacts with other overseas banking units or overseas institutions, and it is not allowed to conduct business in the domestic market.

Offshore financial market: also known as offshore financial market. Take the form of isolation from the domestic financial market, so that non-residents can carry out financing and capital utilization without being affected by the taxation, foreign exchange control and domestic financial regulations of the host country, and can conduct free transactions.

The development of offshore financial business began in the 1960s. At that time, in order to avoid domestic restrictions on bank development and financing, some multinational banks began to operate deposits in currencies other than local currencies in specific international financial centers. In the 1970s, offshore deposits denominated in dollars increased sharply. In 1980s, with the establishment of Tokyo International Banking Facility and offshore financial market, offshore financial business also included local currency. The difference is that this kind of monetary deposit is limited to non-residents.