Group 1 - The EF account is a crucial financial infrastructure for the Hainan Free Trade Port, facilitating financial openness and the free flow of cross-border funds [1] - The primary advantage of the EF account is the ability for funds to be freely transferred across the "first line" between the EF account and foreign accounts, as well as between EF accounts [1] - The "second line" transfer allows limited penetration of funds between the EF account and domestic ordinary accounts of the same entity, subject to certain restrictions [1] Group 2 - The EF account serves eligible enterprises within the free trade port, foreign enterprises, foreign individuals, and financial institutions [2]

Core Insights - The article highlights the significant progress in financial innovation and support for the Hainan Free Trade Port's operations, emphasizing the integration of policies, platform development, and mechanism improvement to enhance financial openness [1][2]. Financial Innovations - Hainan has launched the multi-functional Free Trade Account (EF Account), becoming the first in the country to do so, with 431 accounts opened and a transaction volume of RMB 157.9 billion by June 2023, facilitating cross-border financial activities with 61 countries and regions [3]. - The establishment of cross-border capital centralized operation centers has been initiated, with three centers recognized and state-owned enterprises like China Sinochem setting up treasury management companies in Hainan [4]. - New policies for aircraft and vessel financing leasing have been introduced, enhancing the attractiveness of the leasing industry in Hainan by addressing tax incentives for special purpose vehicles [4]. Policy Support for Economic Development - The Hainan Provincial Financial Office has implemented various measures to support high-quality economic development and the construction of the Free Trade Port, including 15 financial support measures and collaboration with central financial management bodies [6]. - The financial sector in Hainan has shown positive growth, with a loan balance of RMB 14.1 trillion as of June 2025, a year-on-year increase of 13.7%, and a 63% growth in capital market trading volume [7]. Preparations for Free Trade Port Operations - The Hainan Free Trade Port is set to officially start operations on December 18, focusing on balancing cross-border capital flow freedom and risk prevention [8]. - Key preparations include enhancing the EF Account policy framework and expanding pilot policies for cross-border asset management, aiming for a high standard of financial openness [9].