Offshore finance is a variety of financial transactions or financial intermediaries formed by the flow of money outside the issuing country, usually between non-residents. It has the characteristics of being offshore and "two heads are outside". China has not yet established its own offshore financial market.

The People's Bank of China reopened offshore finance in June 2002, and approved Bank of Communications, China Merchants Bank, Pudong Development Bank and Shenzhen Development Bank to start offshore financial business. Bringing the concept of offshore finance back into the category of China's financial industry requires the banking industry to exert its positive economic effects on the basis of effectively controlling offshore financial risks, the consequences of poor risk supervision, and the possible risks and credit risks of offshore finance. Offshore finance serves non-resident individuals or groups, and its extensive extension makes it difficult for banks to deeply grasp the credit performance of customers and the credit status of their industries. This kind of risk is especially serious for foreign exchange loan business.

Legal risk. Although there are individual differences in the investment purpose of offshore investors, the fundamental consistency is to use the differences in tax and financial systems of countries around the world to maintain the preservation and appreciation of personal property. Offshore finance may give speculators opportunities. Money laundering and foreign exchange evasion are hot legal issues in offshore finance. Interest rate and exchange rate risk. The circulation of RMB abroad has been hidden in the fog, and our supervision and management of it has not yet been established. If RMB is used by currency speculators, it is likely to affect the exchange rate of RMB through its manipulation in the foreign exchange market.

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