Core Insights - The cross-border asset management pilot program in Hainan Free Trade Port has made significant progress with the successful launch of the first pilot product by SPDB in collaboration with Wanhua Securities, marking a substantial operational phase for the policy [1][2] Group 1: Business Development - Wanhua Securities, registered in Hainan, is the issuer and designer of the product, while SPDB provides sales and custody services, creating a closed-loop management mechanism for "cross-border fundraising - domestic investment" [1] - The pilot program is one of the first practical implementations following the release of the "Implementation Rules for Cross-Border Asset Management Pilot Business in Hainan Free Trade Port" by the People's Bank of China and other departments in July [1] Group 2: Financial Innovation - This initiative represents SPDB's proactive exploration in the field of cross-border financial innovation and is a significant step in supporting the construction of Hainan Free Trade Port [2] - The business expands the asset allocation channels for foreign investors and injects new vitality into the two-way opening of the capital market [2] - SPDB plans to deepen cooperation with various asset management institutions, focusing on cross-border asset management and offshore investment financing, to contribute to the high-level opening of Hainan Free Trade Port [2]

Core Viewpoint - The official launch of the Hainan Free Trade Port's full island closure operation marks a new phase in China's opening-up strategy, characterized by a comprehensive liberalization and facilitation policy system [1][2]. Financial Infrastructure Support - The financial infrastructure for the closure operation has been strengthened through improved cross-border capital flow management, the launch of multi-functional free trade accounts, and enhanced monitoring mechanisms [1][2][5]. Tax and Trade Benefits - The zero tariff policy for goods trade has been expanded to 6,600 tax items, accounting for approximately 70% of all product tax items, which is expected to attract global trade and investment [2][4]. Cross-Border Financial Services Opportunities - The new policies will create significant demand for cross-border financial services, including trade settlement, capital management, cross-border financing, and offshore bonds, providing banks with new opportunities [2][4]. Multi-Functional Free Trade Accounts - The introduction of multi-functional free trade accounts (EF accounts) aims to facilitate the free flow of cross-border funds, with 729 accounts opened by 11 banks in Hainan, amounting to a business volume of 295 billion RMB by November 2025 [4][6]. Cross-Border Asset Management Pilot - The cross-border asset management pilot program, launched in October 2025, allows foreign investors to invest in various financial products issued by Hainan financial institutions, enhancing the attractiveness of the region [6][7]. Challenges in Cross-Border Financial Services - Despite the opportunities, challenges such as anti-money laundering, compliance checks, and currency fluctuation risks remain for banks providing cross-border financial services [7][8]. Financial Innovation and Regulatory Support - The Hainan Free Trade Port aims to enhance its international financial capabilities by leveraging experiences from the free trade zone, including the establishment of a digital RMB international operation center and the development of offshore bonds [8][9].