Core Insights - Hainan Free Trade Port officially commenced its closure operations at the end of last year, marking a new phase of openness [1] - The People's Bank of China Hainan Branch aims to enhance financial support for Hainan's economic development by implementing a moderately loose monetary policy and promoting cross-border financial reforms [1][4] Financial Support and Development - By the end of 2025, the balance of various loans in Hainan reached 1.4057 trillion yuan, a year-on-year increase of 10.7%, ranking second in the country and exceeding the national average growth rate by 4.5 percentage points [1] - The balance of foreign currency loans reached 18.5 billion USD, ranking sixth nationally [1] - The "Five Major Articles" of financial support achieved a loan balance of 405.1 billion yuan, with a year-on-year growth of 12.0%, surpassing the average growth rate of other loans by 1.3 percentage points [1] Cross-Border Financial Developments - In 2025, Hainan's cross-border payment and receipt scale reached 115.4 billion USD, a year-on-year increase of 6.1%, positioning it at a medium level nationally [2] - The cross-border RMB settlement amount reached 551.4 billion yuan, exceeding 500 billion yuan for the first time, with a year-on-year growth of 11.6% [2] - The EF account system expanded, with 11 banks offering 810 EF accounts, facilitating transactions totaling 350.9 billion yuan with entities from 91 countries [2] Financial Service Enhancements - The promotion of a unified currency settlement account system and the launch of the "Hainan Wallet" project improved payment convenience significantly [3] - The number of foreign card POS machines exceeded 50,000, with an ATM coverage rate of 98.3% [3] - The foreign exchange hedging rate in Hainan reached 47.5%, an increase of 25.3 percentage points from the previous year, enhancing risk management for enterprises [3] Future Outlook - In 2026, the People's Bank of China Hainan Branch will continue to implement a moderately loose monetary policy and promote financial innovation to support the high-quality development of Hainan's economy [4]

Core Insights - The EF account has facilitated the rapid flow of 170 billion yuan in cross-border funds, establishing itself as a key financial reform tool in Hainan's free trade port [3][4] - The EF account, launched on May 6 last year, serves as a core infrastructure for cross-border finance, enabling seamless capital circulation between domestic and foreign entities [3][4] Group 1: EF Account Overview - The EF account, officially known as the Hainan Free Trade Port Multi-Functional Free Trade Account, has been instrumental in creating a "highway" for cross-border capital flow [3] - Over 480 EF accounts have been opened across Hainan, facilitating cross-border fund settlements that cover 61 countries and regions globally [3] Group 2: Benefits and Features - The EF account allows for online, "frictionless" cross-border settlement, significantly reducing processing time from 1-2 days to 2-3 hours [4] - There are four types of EF accounts tailored for different entities: EFE accounts for domestic institutions, EFN accounts for foreign institutions, EFF accounts for foreign individuals, and EFU accounts for domestic and foreign financial institutions [4] Group 3: Currency and Risk Management - The EF account supports integrated domestic and foreign currency transactions, accommodating multiple freely convertible currencies such as USD, EUR, and JPY [5] - Companies can choose between onshore and offshore exchange rates, allowing for effective currency risk management and cost savings [5] Group 4: Growth and Expansion - The EF account business has seen steady growth, with 273 new accounts opened in the first half of this year, including 131 EFE accounts [5] - As of July 28 this year, 10 banks in Hainan have begun pilot operations for the EF account business, indicating a broadening of its application [5]