China improves financial support for all-round reform, opening-up in Hainan
Updated 21:11, 09-Apr-2021

China on Friday issued a plan outlining financial support to Hainan to shore up the resort island's comprehensive reform and opening-up. 

The plan was jointly released by the People's Bank of China, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, and the State Administration of Foreign Exchange. 

It detailed 33 measures to accelerate the RMB convertibility, promote the liberalization and facilitation of cross-border trade and investment, refine Hainan's financial market system, expand the opening-up of its financial sector, strengthen the innovation of financial products and services, and beef up financial supervision to prevent and defuse financial risks. 

The plan is designed to back up the development of Hainan's real economy, serve the free trade port construction, deepen financial reform and opening up with institutional innovation as the core and enhance the construction of financial risk prevention and control system.

China released a master plan for the Hainan free trade port on June 1 last year, aiming to build the province into a globally influential, high-level free trade port by the middle of the century. 

The policies announced on Friday will allow qualified non-residents to purchase properties in Hainan and consider further relaxing restrictions on personal use of foreign exchange for residents.

Qualified non-bank financial institutions will also be allowed to participate in the interbank foreign exchange market.

To enhance foreign participation in Hainan's financial sector, regulators will also support the establishment of joint-venture banks, and allow the set-up of Qualified Foreign Limited Partners, a form of business used for most private equity investments in China, to remit funds freely under certain rules.

Regulators will also grant quotas for qualified foreign fund managers to raise money in China for overseas investments.

Onshore mobile payment institutions will be supported to conduct business overseas, to allow more regions to use China's own Cross-Border Interbank Payment System for yuan settlement, it added.

While opening up the financial services in Hainan, regulators said they would steadily push for oversight and control of risks, build a cross-border monitoring system of capital flows, and assess the risks of money laundering and terrorism financing on a regular basis.

(With input from Reuters)

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