Core Viewpoint - Hainan Province successfully issued 5 billion RMB offshore local government bonds in Hong Kong, marking the fourth issuance since 2022, which reflects the proactive alignment of Hainan Free Trade Port with international trade rules and aims to attract international capital for key industry development [1][2]. Group 1: Bond Issuance Details - The bond issuance has maturities of 3, 5, and 10 years, with funds primarily allocated to marine protection, livelihood security, and aerospace-related key research and infrastructure projects, including China's first local government bond themed on aerospace [1]. - The issuance attracted participation from commercial banks, funds, brokerages, and asset management companies across Europe and Asia, with peak orders reaching nearly 23 billion RMB, indicating strong international market confidence in Hainan's credit strength and development prospects [1]. Group 2: Financial Innovation and Cross-Border Transactions - Hainan will continue to utilize the multi-functional free trade account (EF account) for bond fund settlement, which has significantly improved cross-border capital flow since its launch in May 2024, with over 330 EF accounts opened by 10 pilot banks and a transaction volume exceeding 120 billion RMB [2]. - The design of the Hainan Free Trade Port emphasizes the facilitation of cross-border capital flow, aiming to expand financial openness and accelerate financial reform and innovation [2]. Group 3: Strengthening Hainan-Hong Kong Financial Cooperation - The financial cooperation between Hainan and Hong Kong has been deepening, with a memorandum signed in March 2023 focusing on finance as one of the five key areas for collaboration [3]. - The upcoming full island closure operation of Hainan Free Trade Port on December 18, 2023, is expected to create significant opportunities in institutional innovation and cross-border finance, attracting increased international investor interest [3].

Group 1 - Hainan Province successfully issued 5 billion RMB offshore local government bonds in Hong Kong, marking the fourth issuance since 2022 [1] - The issuance is part of Hainan's efforts to align with international trade rules and attract international capital for key industry development [1] - The bonds have a maturity of 3, 5, and 10 years, with funds directed towards marine protection, social welfare, and aerospace-related projects, including China's first local government bond themed on aerospace [1] Group 2 - The issuance attracted participation from commercial banks, funds, brokerages, and asset management companies across Europe and Asia, with peak orders reaching nearly 23 billion RMB, indicating strong international confidence in Hainan's credit strength and development prospects [1] - Hainan will continue to utilize the multi-functional free trade account (EF account) for bond fund settlement, enhancing cross-border capital flow since its launch in May 2024 [2] - The EF account has facilitated over 120 billion RMB in business volume with 48 countries and regions, reflecting the importance of cross-border capital flow in Hainan's free trade port design [2] Group 3 - Financial cooperation between Hainan and Hong Kong is intensifying, with a memorandum signed in March 2023 to deepen collaboration in finance among other sectors [3] - The launch of the "cross-border payment" service by six pilot banks in June 2023 allows for instant cross-border remittances between Hainan and Hong Kong [3] - Hainan's full island closure operation is set to begin on December 18, 2023, presenting significant opportunities for institutional innovation and cross-border finance [3]