Hainan's financial industry 14th 5 Year Plan released

On November 23, the 14th Five-Year Plan for the development of Hainan's financial industry was officially released.

The Plan put forward a series of development goals. By the end of the 14th Five-Year Plan, the added value of Hainan's financial industry will reach more than CNY 100 billion, accounting for more than 10.0% of GDP.The balance of deposits and loans will exceed CNY 2 trillion and CNY 1.8 trillion respectively, the accumulated financing in the capital market will reach more than CNY 40 billion, the depth of insurance will be 5%, and the density of insurance will be 3,500 yuan per person.

The province will strive to reach 200 billion yuan in social financing by the end of the Plan period. The number of domestic and foreign listed companies will exceed 50.

Hainan's financial industry will focus on the two major tasks of improving the financial functions of the Hainan Free Trade Port and improving the financial ecosystem, focusing on the liberalization and facilitation of service trade investment. 

Haikou，the capital of Hainan Province/ LIU YANG

Hainan will focus on the development of trade finance, consumer finance, technology finance, and green finance in compliance with international regulations. During the RCEP and CPTPP periods, Hainan will play a leading role for domestic enterprises to trade worldwide and bringing international enterprises into the island.

The Plan sets out a series of development goals. By the end of the 14th Five-Year Plan, the overall goal is to initially establish a financial system that is compatible with a high-level Free Trade Port. 

The main objectives include building an internationally competitive financial institution system compatible with an open economy, improving an integrated financial business and product innovation system compatible with the high-quality development of the real economy, enriching a factor market system in line with the rules and institutional system of international practices, and improving a new system of cross-border investment and financing compatible with trade and investment liberalization and facilitation. Hainan will further expand a financial talent development system, deepen a protection system compatible with the high-quality development of the financial industry, and build a risk prevention and control system compatible with the all-around opening of Hainan's financial industry to the outside world.

Three phases to develop a high standard Hainan Free Trade Port Financial System during the 14th Five Year Plan period

The following directives for Hainan appear in the 14th Five Year Plan:

1. Make up for shortcomings

From 2021 to 2022, explore and initially establish the financial development direction and model, and learn from the advanced financial experience of world-renowned free trade ports such as Hong Kong, Singapore, and Dubai. In addition, speed up the introduction and training of high-quality financial talent.

2. Consolidation and enhancement

From 2022 to 2024, initially establish a multi-level financial system with the characteristics of the Hainan Free Trade Port, and consolidate and promote early financial innovations. Guided by the complete hardware conditions for the Hainan Free Trade Port’s customs clearance operations, gradually implement the hardware configuration of the plan and the implementation plans of cities, counties, and key parks.

3. Development and innovation

From 2024 to 2025, the financial industry will be opened up to the outside world in all aspects to start a phase of rapid development. Accelerate the reform and opening-up process, increase cooperation and exchange with internationally renowned free trade ports, deepen complementary or in-depth cooperation with developed domestic financial provinces, cities, and regions, and develop a factor market system in line with the rules and institutional mechanisms of international practice. Form breakthroughs in key financial innovation areas such as QFLP, QDLP, new international trade, epidemic prevention insurance, rural revitalization insurance, and insurance futures.