Core Viewpoint - The official launch of the Hainan Free Trade Port's full island closure operation on December 18 marks a new development stage characterized by "one line open, two lines controlled, and free within the island," emphasizing further expansion of openness rather than closure [1] Financial Support and Development - The People's Bank of China has actively promoted financial policies and institutional frameworks suitable for the Hainan Free Trade Port since the release of the overall plan in June 2020, effectively supporting the construction of the port [1] - As of now, all three financial preparations for the closure have been completed, with improvements in cross-border capital flow management systems [1] - The multi-functional free trade account (EF account) has been launched, with a total business volume of 268.9 billion yuan, facilitating capital transfers with 80 countries and regions [2] Loan Growth and Financing Costs - By the end of November, the total balance of various loans in Hainan reached 1.4101 trillion yuan, a year-on-year increase of 11% [2] - Specific sectors such as technology-related industries, green loans, and digital economy loans have seen significant growth, with increases of 9.2%, 25.4%, and 8.4% respectively [2] - The average interest rate for general loans in Hainan was 3.18% as of October, a decrease of 0.34 percentage points compared to the previous year [3] Cross-Border Financial Services - The establishment of a comprehensive system for cross-border financial openness, including monitoring and early warning mechanisms, enhances the ability to prevent financial risks [3] - The People's Bank of China has issued guidelines for cross-border asset management pilot business, with initial applications totaling 5 billion yuan from four institutions [4] Digital Payment Innovations - The digital yuan pilot program is advancing, with significant coverage in various sectors, including duty-free shopping and rural revitalization [5] - The "Hainan Wallet" project has been successfully launched, and mobile payment products have seen transaction numbers and amounts increase by 97.46% and 100.11% respectively [5] - The rapid development of mobile payment products enhances payment convenience and meets diverse consumer needs, contributing to innovation in the payment sector [5]

Core Viewpoint - The official launch of the Hainan Free Trade Port's full island closure operation on December 18 marks a new development phase characterized by "first-line openness, second-line control, and internal freedom" [1] Financial Support and Policy Development - The People's Bank of China has been actively promoting financial policies and institutional frameworks since the release of the Hainan Free Trade Port construction plan in June 2020, effectively supporting the port's development [1] - Three key financial preparations for the closure have been completed, including the improvement of cross-border capital flow management systems and the introduction of the multi-functional free trade account (EF account) [2][5] EF Account and Cross-Border Transactions - By the end of October 2025, 11 banks in Hainan had launched EF accounts, with a total of 658 accounts opened and a transaction volume of 2,689 billion RMB [2][5] - The EF account facilitates cross-border capital flow with transactions occurring with 80 countries and regions, enhancing the efficiency of cross-border financial operations [3] Financial Monitoring and Risk Management - A cross-border capital flow monitoring and early warning mechanism has been established to enhance the ability to prevent financial risks [2][3] - The financial system's total loan balance in Hainan reached 14,101 billion RMB by the end of November, with significant growth in loans for key sectors such as technology and green finance [2] Financial Service Upgrades - The digital RMB pilot program is being actively implemented across Hainan, covering various sectors and contributing to the growth of digital payment solutions [4][7] - The launch of the "Hainan Wallet" project and the establishment of comprehensive service centers at major airports have significantly improved payment convenience for foreign visitors [7] Cross-Border Financial Opportunities - The closure is seen as an opportunity for financial institutions to expand their market presence, particularly in cross-border settlement, financing, and asset management [8][9] - Financial institutions are encouraged to leverage the EF account for dual-direction investment and financing, while also exploring digital RMB applications in key industries [9] Conclusion - The Hainan Free Trade Port's closure operation is expected to enhance trade and investment liberalization, providing a fertile ground for financial innovation and international cooperation [8][9]