New financial measures unveiled for FTP's further opening up

On Wednesday September 1st, China's southern province of Hainan announced a set of 89 new measures (including increased convertibility of the Chinese yuan and market access for foreign investors) as part of moves to further open up the free trade port's financial sector.

Aerial photo shows the Century Bridge, a landmark building in provincial capital Haikou. FENG SHUO / HAINAN DAILY

According to the measures, Hainan will step up support to expand the number of pilot banks to facilitate foreign exchange in trade. Corporations and enterprises are encouraged to use the Chinese yuan in the settlement for cross-border trade in goods and services. The use of free trade accounts for cross-border trade settlement in new forms of international trade is also encouraged.

To enhance foreign participation in Hainan's financial sector, proposed measures will also allow the set-up of Qualified Foreign Limited Partners (QFLP) pilot programs. Under these QFLP programs, qualified international investors will be allowed to freely remit funds both outward and inward in a balance management mode. Additionally, foreign exchange registration procedures will be greatly simplified.

The measures announced on Wednesday will also support banks, securities companies, futures companies, public offering fund management companies, insurance companies and other financial institutions to carry out cross-border asset management businesses in the Hainan FTP.

In terms of easing personal cross-border transactions, Hainan will allow international personnel working in the FTP to make various investments in China (including investments in securities and stock equity purchases). Qualified non-residents will also be allowed to purchase properties in Hainan, and restrictions on personal use of foreign exchange for residents will be further relaxed.

To connect China's national trading scheme with the global market, a proposed international carbon emissions trading exchange is also among the measures released.

Last June, China gave the status of a "free trade port" to Hainan, with the aims of building the island province into an offshore center of trade and finance, where the flow of commodities, capital and talent is facilitated.