Core Insights - Hainan Free Trade Port will officially start its full island closure on December 18, 2025, marking a significant step in China's commitment to high-level opening-up and the construction of an open world economy [1] - The financial policy framework in Hainan Free Trade Port has been gradually established, making it one of the leading regions in financial openness and innovation in China [1] - The People's Bank of China has been actively improving financial policies and systems to support the development of Hainan Free Trade Port, with all three financial preparations for closure completed [1] Financial Innovations and Cross-Border Transactions - Hainan has implemented a series of financial innovation policies, resulting in a continuous increase in cross-border payment scales, with a total of $101.61 billion in cross-border receipts and payments from January to November this year, reflecting an average annual growth rate of 55% since 2020 [2] - The digital yuan pilot in Hainan is progressing well, with coverage in various sectors including duty-free shopping and rural revitalization, enhancing the convenience of foreign payment services [2] - As of October 2025, over 650 EF accounts have been opened in Hainan, facilitating transactions with 80 countries and regions, primarily in areas such as foreign exchange settlement and cross-border trade [2] Monetary Policy and Loan Growth - The People's Bank of China in Hainan has been implementing a moderately loose monetary policy to improve financing accessibility in key areas, creating a favorable financial environment for the operation of Hainan Free Trade Port [3] - As of November 2023, the balance of various loans in Hainan reached 14,101 billion yuan, with a year-on-year growth of 11.0%, surpassing the national average growth rate of 4.7% [3]

Core Viewpoint - The introduction of the multi-functional free trade account by the People's Bank of China significantly enhances the efficiency of cross-border capital flow, addressing challenges in high-level free and convenient movement of funds [1][6]. Group 1: Multi-Functional Free Trade Account - The multi-functional free trade account allows for legal and efficient transfer and circulation of funds between domestic and overseas accounts, streamlining cross-border settlement processes for businesses [1]. - The simplified process of cross-border fund settlement, which eliminates additional reviews and supplementary documentation, has greatly improved the efficiency of capital flow for enterprises [1]. - The offshore exchange rate advantages provided by the multi-functional free trade account have resulted in substantial financial savings for companies, exemplified by a recent $23 million settlement that saved significant costs [1]. Group 2: Business Expansion and Financial Services - The application scenarios for the multi-functional free trade account are rapidly expanding from basic settlement to complex financial services, supporting enterprises in their international market expansion [3]. - Innovations in cross-border financing, including offshore USD financing and domestic RMB exchange rate swaps, are being developed in conjunction with the free trade port policies, promising further benefits for businesses [3]. Group 3: Banking and Financial Data - As of November 2025, 11 banks in Hainan have launched the multi-functional free trade account, facilitating a business volume equivalent to RMB 295 billion, with fund transfers involving entities from 80 countries and regions [4]. - The People's Bank of China in Hainan plans to deepen the pilot for cross-border asset management and continuously expand cross-border investment and financing channels following the full closure of the island [6].

Core Insights - Hainan Free Trade Port will officially start full island closure on December 18, 2025, marking a significant milestone in its development, characterized by a customs regulatory area with "one line open, one line controlled, and free movement within the island" [1] - Since the release of the overall plan for Hainan Free Trade Port, over 20 innovative financial policies have been introduced, establishing Hainan as a leading region for financial openness and innovation in China [1] Financial Infrastructure - The multi-functional Free Trade Account (EF Account) is a crucial financial infrastructure for Hainan's Free Trade Port, facilitating the free and convenient flow of cross-border funds [2] - The People's Bank of China has implemented a management system for cross-border fund flows and launched the EF Account, which has gained market recognition and expanded its service coverage [2][3] Cross-Border Financial Activities - As of October 2025, 11 banks in Hainan have opened 658 EF Accounts, with a total transaction volume of 2,689 billion RMB, covering transactions with 80 countries and regions [3] - The cross-border payment scale in Hainan reached 101.61 billion USD from January to November this year, with an average annual growth rate of 55% since 2020 [4] Investment and Financing - Hainan has seen significant growth in cross-border investment and financing, with 144 QFLP equity investment funds established, attracting 2.275 billion USD in cross-border inflows [5] - The total balance of loans in Hainan reached 14,101 billion RMB by the end of November, growing by 11.0% year-on-year, surpassing the national average growth rate of 4.7% [6]

Core Viewpoint - Hainan Free Trade Port is set to officially launch its full island closure operations on December 18, 2025, marking a significant milestone in its financial policy and institutional framework development since the release of the overall plan in 2020 [1] Group 1: Financial Policy and Institutional Framework - The financial policy system in Hainan Free Trade Port has been initially established, positioning it as a national leader in financial openness and innovation [1] - The People's Bank of China has been continuously improving financial policies and institutional frameworks suitable for Hainan Free Trade Port, with all preparations for the closure operation completed [1] Group 2: Cross-Border Financial Innovations - Hainan has aimed for "free and convenient cross-border capital flow," implementing several financial innovation policies, including the establishment of the multi-functional EF account system [1] - From January to November 2025, Hainan's cross-border payment and receipt scale reached $101.61 billion, with an average annual growth rate of 55% since 2020 [1] - The cross-border RMB settlement scale reached 484.5 billion yuan from January to November, reflecting a year-on-year increase of 7.8% [1] Group 3: EF Account Development - The EF account officially launched on May 6, 2024, with 11 banks in Hainan having adopted it by the end of October 2025, facilitating transactions amounting to 268.9 billion yuan [2] - The EF account allows for convenient "cross-line" and "cross-border" fund transfers, enabling businesses to conduct capital transactions without the usual foreign exchange management restrictions [2] - By the end of October 2025, over 650 EF accounts had been opened in Hainan, with transactions occurring with 80 countries and regions, covering various business scenarios [3] Group 4: Economic Impact - By the end of 2024, Hainan's foreign-related income and expenditure scale reached $108.63 billion, which is 2.9 times that of the end of 2021 [3] - The number of enterprises involved in foreign exchange income and expenditure in Hainan approached 10,000 by the end of October 2025, reflecting a 1.4 times increase compared to the end of 2021 [3]

Core Insights - Hainan Free Trade Port has officially launched its island-wide closure on December 18, marking a significant milestone in its development since the release of the overall plan in 2020 [1] Group 1: Financial Policies and Innovations - The People's Bank of China has continuously improved financial policies and institutional frameworks to support the development of Hainan Free Trade Port [1] - The EF account system, designed to facilitate high-level cross-border capital flow, has been launched, allowing banks to provide more convenient financial services for cross-border transactions [1] - As of October 2025, 11 banks in Hainan have adopted the EF account, with transaction volumes exceeding 250 billion RMB, involving fund transfers with 80 countries and regions [1] Group 2: Cross-Border Financial Activities - From January to November this year, Hainan's cross-border receipts and payments reached 101.61 billion USD, with an average annual growth rate of 55% since 2020 [2] - The digital RMB pilot program is being actively implemented across various sectors in Hainan, enhancing payment coverage in areas such as duty-free shopping and rural revitalization [2] - The convenience of foreign payment methods has significantly improved, with transaction numbers and amounts for mobile payment products increasing by 97.46% and 100.11% respectively from January to November 2025 [2] Group 3: Financial Environment and Lending - The People's Bank of China in Hainan has implemented a moderately loose monetary policy to enhance financing accessibility in key areas, contributing to a favorable financial environment for the Free Trade Port [2] - As of November this year, the total balance of RMB and foreign currency loans in Hainan reached 1.41 trillion RMB, reflecting a year-on-year growth of 11.0%, surpassing the national average of 4.7% [2]

Core Viewpoint - Hainan Free Trade Port officially commenced full island closure operations on December 18, 2025, supported by the People's Bank of China (PBOC) through the establishment of financial policies and systems tailored to the port's needs [1] Financial Preparations - All three financial preparations for the closure have been completed, including the enhancement of cross-border capital flow management systems and the launch of the multi-functional free trade account (EF account) [1] - By the end of October 2025, 11 banks in Hainan had launched EF accounts, with transaction volumes exceeding 250 billion RMB, and funds were transferred with entities in 80 countries and regions [1] - The cross-border capital flow monitoring and early warning mechanism has been improved, enhancing the ability to prevent cross-border financial risks [1] Financial Innovation and Cross-Border Transactions - The PBOC is advancing financial innovation policies aimed at achieving "free and convenient cross-border capital flow," resulting in a continuous increase in cross-border revenue and expenditure [1] - From January to November 2025, Hainan's cross-border revenue and expenditure reached 101.61 billion USD, with an average annual growth rate of 55% since 2020 [2] Cross-Border Trade and Investment - Hainan has seen significant progress in high-level openness for cross-border trade and investment, with a total of 43.05 billion USD in cross-border trade facilitation pilot business and 2.8 billion USD in cross-border investment and financing pilot business since the policy's implementation [2] - By the end of October 2025, 144 qualified foreign limited partners (QFLP) equity investment funds had been established in Hainan, with a cumulative cross-border inflow of 2.275 billion USD [2] Cross-Border RMB Settlement - The PBOC is focusing on expanding the use of cross-border RMB, with the total RMB cross-border payment and receipt amount in Hainan reaching 484.5 billion RMB from January to November 2025, reflecting a year-on-year growth of 7.8% [2] Asset Management Pilot Programs - As of the end of October 2025, the PBOC's Hainan branch received applications from four pilot issuing institutions, with a total initial application scale of 5 billion RMB [3] - Two private placement pilot products were successfully subscribed by overseas investors, completing the fund transfer process [3]

Group 1 - The Hainan Free Trade Port officially launched its full island closure on December 18, with the People's Bank of China supporting the financial policies and institutional framework suitable for the port's development [1] - Three financial preparations for the closure have been completed, including the improvement of cross-border capital flow management, the launch of the multi-functional free trade account (EF account), and the enhancement of the cross-border capital flow monitoring and early warning mechanism [2] - As of October 2025, 11 banks, including the five major banks, have opened 658 EF accounts, with a total business volume of RMB 268.9 billion, facilitating capital transfers with 80 countries and regions [2] Group 2 - The cross-border payment and receipt scale in Hainan reached USD 101.61 billion in the first 11 months of 2025, with an average annual growth rate of 55% since 2020 [3] - The implementation of various financial policies, including the Qualified Foreign Limited Partner (QFLP) pilot program, has led to a cumulative cross-border inflow of USD 227.5 million and outflow of USD 134.6 million [3] - The People's Bank of China has issued guidelines for cross-border asset management pilot businesses, with four institutions applying for a total issuance scale of RMB 5 billion [4] Group 3 - The People's Bank of China is implementing a moderately loose monetary policy to support the construction of Hainan's modern industrial system, enhancing financing accessibility in key areas [5] - As of November 2025, the balance of various loans in Hainan reached RMB 1.41 trillion, with a year-on-year growth of 11.0%, surpassing the national average by 4.7 percentage points [6] - Specific loan growth rates include 157.4% for the elderly care industry and 25.4% for green loans, indicating a focus on strategic sectors [6]

Core Viewpoint - The Hainan Free Trade Port will officially start its full island closure on December 18, with all three financial preparations completed to support its development and financial services optimization [1][2]. Financial Preparations - The three financial preparations for the closure include the improvement of cross-border capital flow management, the establishment of a monitoring and early warning mechanism for cross-border capital flows, and the launch of the multi-functional free trade account (EF account) [2]. - As of the end of October, 11 banks in Hainan have launched EF accounts, with 658 accounts opened and a transaction volume of approximately 268.9 billion RMB, facilitating capital transfers with 80 countries and regions [2]. EF Account Features - The EF account allows for "cross-border" fund transfers and "cross-line" fund transfers, enabling businesses to conduct capital transactions without the usual restrictions on foreign debt and cross-border financing [3]. - The funds in EF accounts must adhere to specific usage restrictions, prohibiting investments outside the business scope and certain types of loans [3]. Financial Innovation and Cross-Border Transactions - Hainan has implemented several financial innovation policies, achieving a cross-border payment scale of 101.6 billion USD in the first 11 months of the year, with an average annual growth rate of 55% since 2020 [4]. - The province has seen successful pilot programs for cross-border asset management, with four institutions applying for a total of 5 billion RMB in quotas [4]. - The cross-border trade investment pilot has expanded to the entire province, facilitating 43.05 billion USD in cross-border trade and 2.8 billion USD in cross-border investment financing [5]. Cross-Border RMB Settlement - The People's Bank of China has focused on expanding the use of RMB in cross-border transactions, with a total of 484.5 billion RMB in cross-border RMB payments in the first 11 months, reflecting a year-on-year increase of 7.8% [5]. Digital Currency and Payment Innovations - The digital RMB pilot in Hainan has progressed significantly, with mobile payment products showing substantial growth in transaction volume and value [6].

Core Viewpoint - Hainan Free Trade Port has established itself as a leading region for financial openness and innovation in China since the release of the overall plan for its construction in 2020, with significant progress in cross-border capital flow policies and financial systems [1]. Group 1: Financial Policy and System Development - The People's Bank of China has been continuously improving financial policies and systems suitable for Hainan Free Trade Port, completing all preparations for its financial closure operation [1]. - Hainan aims for "free and convenient cross-border capital flow," implementing innovative financial policies such as the multi-functional free trade account (EF account) system, which supports high-level cross-border investment and asset management trials [1]. Group 2: Cross-Border Financial Activities - From January to November 2025, Hainan's cross-border payment and receipt scale reached $101.61 billion, with an average annual growth rate of 55% since 2020. The cross-border RMB settlement volume was 484.5 billion yuan, reflecting a year-on-year increase of 7.8% [1]. - As of October 2025, 11 banks in Hainan have launched EF accounts, with a transaction volume equivalent to 268.9 billion yuan, facilitating fund transfers with 80 countries and regions [2]. Group 3: EF Account Features and Usage - The EF account allows for convenient "cross-line" fund transfers and "cross-border" fund transfers without restrictions on foreign debt and cross-border financing, enabling businesses to engage in capital transactions without prior registration with foreign exchange authorities [2]. - By October 2025, over 650 EF accounts had been opened in Hainan, with the main business scenarios including spot and forward foreign exchange settlement, overseas loans, cross-border trade settlements, and borrowing foreign debts [3]. Group 4: Impact of Policies on Hainan's Economy - By the end of 2024, Hainan's foreign-related income and expenditure scale reached $108.63 billion, which is 2.9 times that of the end of 2021. The number of enterprises involved in trade foreign exchange receipts and payments in Hainan approached 10,000, reflecting a 1.4 times increase since the end of 2021 [3].

Core Viewpoint - Hainan Free Trade Port is set to officially launch its full island closure operation on December 18, 2025, marking a significant milestone in its development [1]. Financial Policy and System Development - Since the release of the "Overall Plan for Hainan Free Trade Port Construction" in 2020, a preliminary financial policy system has been established, positioning Hainan as a leader in financial openness and innovation in China [2]. - The People's Bank of China has been continuously improving financial policies and systems compatible with Hainan Free Trade Port, completing all preparations for the financial operations required for the closure [2]. Cross-Border Capital Flow - Hainan aims to achieve "free and convenient cross-border capital flow," with the establishment of the multi-functional free trade account (EF Account) system facilitating high-level cross-border capital movement [2]. - From January to November 2025, Hainan's cross-border payment and receipt scale reached $101.61 billion, with an average annual growth rate of 55% since 2020 [2]. - The cross-border RMB settlement scale reached 484.5 billion yuan during the same period, reflecting a year-on-year increase of 7.8% [2]. EF Account Implementation - The EF Account officially launched on May 6, 2024, with 11 banks in Hainan having adopted the system by the end of October 2025, facilitating transactions amounting to 268.9 billion yuan [3]. - The EF Account allows for convenient cross-border fund transfers and provides significant regulatory advantages for enterprises engaging in capital transactions with foreign accounts [3]. - As of October 2025, over 650 EF Accounts have been opened, with transactions occurring with 80 countries and regions, covering various business scenarios such as foreign exchange settlement and cross-border trade [4]. Growth in Foreign Trade and Investment - By the end of 2024, Hainan's foreign-related income and expenditure scale is projected to reach $108.63 billion, which is 2.9 times that of the end of 2021 [4]. - The number of enterprises involved in foreign trade and foreign exchange transactions in Hainan has increased to nearly 10,000 by October 2025, reflecting a 1.4 times growth since the end of 2021 [4].