Core Points - The establishment of a full island customs closure in Hainan Free Trade Port is a significant milestone for expanding openness and will officially start on December 18, 2025 [1][3] - The customs closure policy measures are summarized as "four more" which include more favorable zero-tariff policies, more relaxed trade management measures, more convenient passage measures, and more efficient regulatory models [2][4] Group 1: Customs Closure Policy Measures - The zero-tariff policy will see the proportion of zero-tariff goods from 21% to 74%, allowing for tax-free circulation among eligible entities within the island [2][5] - Trade management measures will be more lenient, with some previously prohibited or restricted imports now being allowed [2] - The passage measures will enhance convenience through the establishment of ten "second-line" ports and streamlined customs processes [2][9] Group 2: Tax Policy Changes - The coverage of zero-tariff goods will significantly increase to approximately 6,600 tax items, representing 74% of all goods, a rise of nearly 53 percentage points compared to pre-closure policies [5] - The range of beneficiaries for the zero-tariff policy will expand to include various enterprises and non-enterprise units with actual import needs [5] - Restrictions on the conditions for zero-tariff goods will be relaxed, allowing for free circulation among eligible entities without the need to pay import taxes [5][6] Group 3: Regulatory Framework - The "Prohibited and Restricted Import and Export Goods List" has been published to enhance transparency and facilitate trade [7][8] - The list allows for the cancellation of import license management for 60 old mechanical and electrical product codes, covering about 80% of those previously under such management [8] - Customs will implement a dual-channel system for efficient regulation, with streamlined declaration processes reducing required items from 105 to 42 [9][11] Group 4: Implementation Readiness - The Hainan Free Trade Port is prepared for the customs closure with all necessary policies and infrastructure in place, including a smart regulatory platform [11][12] - The focus will be on policy implementation and continuous innovation in regulatory practices to enhance competitiveness [12]

Core Points - The Hainan Free Trade Port (FTP) will officially start its full island customs closure operation on December 18, 2025, as a significant milestone in expanding openness and facilitating international trade [1][3] - The customs closure will not restrict the flow of most goods and personnel, maintaining current management practices while enhancing international connectivity [1][3] - The FTP aims to attract global high-quality resources and promote high-quality development through a series of liberalization and facilitation policies [1][3] Policy Measures - The "zero tariff" policy will be implemented, increasing the proportion of zero-tariff goods from 21% to 74% for imports from the "first line" [2] - Trade management measures will be relaxed, allowing for open arrangements for certain previously restricted imports [2] - Existing eight open ports will serve as "first line" ports for the convenient passage of eligible imported goods [2] - A high-efficiency regulatory model will be established to ensure smooth implementation of the open policies [2] Economic Impact - The actual use of foreign capital in Hainan reached 102.5 billion yuan, with an annual growth rate of 14.6% [3] - The four leading industries (tourism, modern services, high-tech, and tropical agriculture) have increased their contribution to the provincial GDP by 13.7 percentage points, now accounting for 67% [3] - The ecological environment quality in Hainan remains among the best in the country, contributing to improved living standards and life expectancy [3] Taxation and Regulation - Independent legal entities registered in the FTP will be exempt from import taxes on goods outside the taxable list, enhancing the coverage of the "zero tariff" policy [4] - The customs authority has developed regulations to ensure effective supervision of the "zero tariff" and other open policies, balancing facilitation and regulation [4] - A new list of prohibited and restricted import/export goods has been established to enhance transparency and facilitate trade [5] Trade Management - The new list significantly increases the transparency of trade management and allows for the relaxation of import restrictions on certain goods, including the cancellation of import licenses for 60 old mechanical products [5] - The FTP will allow for bonded repairs of 38 product codes, achieving the highest level of openness in this area nationwide [5]

Market Overview - The Shanghai Composite Index briefly surpassed 3600 points before weakening at the close, with total trading volume close to 1.9 trillion yuan, indicating a recovery in market risk appetite [1] - The market's upward breakthrough is supported by stable economic fundamentals and policies aimed at addressing core issues in economic transformation [1] Policy Developments - The National Development and Reform Commission announced that the Hainan Free Trade Port will officially start operations on December 18, 2025, enhancing the flow of people, goods, capital, and data [2] - The implementation of a "one line open, one line controlled, and free within the island" policy is expected to attract more international enterprises and elevate Hainan's position in the global supply chain [2] Foreign Investment Trends - Foreign investment in RMB-denominated assets remains stable, with foreign holdings of domestic RMB bonds exceeding 600 billion USD, marking a historically high level [2] - In the first half of the year, foreign net purchases of domestic stocks and funds reached 10.1 billion USD, reversing the trend of net selling observed over the past two years [2][3] Market Performance - On July 23, A-shares showed mixed performance, with the Shanghai Composite Index closing at 3582.30 points, up 0.01%, while the Shenzhen Component Index and the ChiNext Index saw slight declines [4] - The non-bank financial, beauty care, and home appliance sectors led the gains, while construction materials, defense, and machinery sectors experienced the largest declines [4] Trading Activity - The market's trading volume was reported at 189.87 billion yuan, a decrease from the previous trading day, while the margin financing balance increased to 1.93 trillion yuan [5]

Core Viewpoint - Hainan Free Trade Port will implement a full island closure operation characterized by a policy system of "one line open, one line controlled, and free within the island" [1] Group 1 - The policy aims to enhance the liberalization and facilitation of trade and investment in Hainan [1] - The operational framework will focus on balancing openness and control to optimize economic activities [1]

Core Viewpoint - The implementation of full island closure operation in Hainan Free Trade Port is a landmark project and an important measure to further expand openness, characterized by the policy of "one line open, two lines controlled, and free flow within the island" [1] Group 1 - The full island closure operation is a significant milestone in the construction of Hainan Free Trade Port [1] - The policy features "one line open," which allows for a series of free and convenient entry and exit measures between Hainan Free Trade Port and other countries and regions outside China's customs [1] - The "two lines controlled" aspect refers to precise management of the content that is opened up in the "one line" between Hainan Free Trade Port and the mainland [1] - The "free flow within the island" indicates that various factors can circulate relatively freely within Hainan Free Trade Port [1]