Core Viewpoint - The introduction of the "RMB-denominated settlement" is a significant institutional design that directly supports the internationalization of the RMB and the financial opening goals of the Hainan Free Trade Port [1]. Summary by Sections Hainan Free Trade Port Timeline - The specific date for the closure of Hainan Free Trade Port is set for December 18, 2025, as approved by the Central Committee [2]. - The "Implementation Rules for Cross-Border Asset Management Pilot Business" were published on July 21, 2023, and will take effect on August 21, 2025 [2][3]. Key Innovations in the Implementation Rules - The rules allow global investors to participate without geographical restrictions, facilitating easier access for foreign capital into the domestic financial market [5]. - Foreign individual investors can now directly invest in pilot asset management products using proof of residence in Hainan and RMB income, enhancing investment convenience [5]. - All transactions for pilot asset management products must be settled in RMB, creating a closed-loop management system [5][6]. - The funds raised by pilot asset management products must be directed towards the domestic market, ensuring that the underlying assets are RMB-denominated [6]. - Issuing institutions can offer products to both domestic and foreign investors, increasing participation incentives [7]. - The range of pilot products covers various risk levels (R1 to R4), providing a wide selection for investors [7]. Importance of RMB-Denominated Settlement - The emphasis on RMB-denominated settlement is crucial as it fosters a closed-loop for cross-border asset management, cultivates the offshore RMB market, and positions Hainan as a key hub for RMB asset allocation [7]. Initial Pilot Scale and Future Adjustments - The initial pilot scale is capped at 10 billion RMB, with provisions for dynamic adjustments based on economic and market conditions [8]. - In the initial phase, only licensed foreign financial institutions or legitimate Chinese enterprises abroad can participate, with gradual opening to other foreign investors thereafter [8].

Core Viewpoint - The establishment of the cross-border asset management pilot program in Hainan Free Trade Port, effective from August 21, 2025, is a significant step towards financial openness in China, with a focus on facilitating foreign investment through RMB-denominated transactions [1][2][4]. Summary by Relevant Sections Implementation Timeline - The Hainan Free Trade Port will officially start operations on December 18, 2025, as approved by the central government [1]. Regulatory Framework - The "Implementation Rules for Cross-Border Asset Management Pilot Business" were jointly formulated by several regulatory bodies and will take effect on August 21, 2025 [1][2]. Global Investor Access - The rules allow global investors to use funds from both domestic and international sources to purchase pilot asset management products, removing the need for bilateral agreements [2][3]. Individual Investor Inclusion - Foreign individual investors can directly participate by providing proof of residence or employment in Hainan for at least one year, along with evidence of RMB income from within China [2][3]. RMB Settlement and Management - All transactions for pilot asset management products must be conducted in RMB, creating a closed-loop management system that supports the internationalization of the RMB [3][4]. Investment Focus - Funds raised through pilot asset management products must be directed towards the domestic market, ensuring that the underlying assets are RMB-denominated [3][5]. Product Diversity - The pilot program will cover a range of risk levels (R1 to R4), providing various investment options from low-risk money market funds to higher-risk private equity [3][5]. Initial Scale and Future Adjustments - The initial total scale limit for the pilot program is set at 10 billion RMB, with provisions for dynamic adjustments based on market conditions and financial developments [5].

Core Viewpoint - The implementation details for the cross-border asset management pilot program in Hainan Free Trade Port have been finalized, aiming to attract foreign investors and enhance the international financial service level in the region [1][3]. Summary by Relevant Sections Pilot Program Details - The initial pilot program has a total scale limit of 10 billion RMB, allowing foreign investors to invest in various asset management products issued by financial institutions in Hainan [1][3]. - The pilot program will officially take effect on August 21, 2025, with an initial 180-day period where only licensed foreign financial institutions or legitimate Chinese enterprises abroad can invest [3][5]. Product Scope and Investor Protection - The asset management products included in the pilot program range from risk levels "R1" to "R4," covering publicly offered securities investment funds, private asset management products, and insurance asset management products [4]. - Foreign individual investors must provide proof of residence, employment, or study in Hainan for at least one year, along with evidence of RMB income from within China to invest in the pilot products [3][4]. Market Impact and Future Prospects - The pilot program is expected to enhance the attractiveness of Hainan Free Trade Port to foreign investors and expand the investment channels for foreign individuals directly into the Chinese market [4][5]. - As of June 2023, three banks in Hainan have already engaged in the pilot program, with a total amount of 360 million RMB [5].

Core Viewpoint - The implementation details of the cross-border asset management pilot program in Hainan Free Trade Port have been released, allowing foreign investors to use funds from both domestic and international sources to purchase pilot asset management products [1] Group 1 - Foreign investors can use funds from both domestic and international sources to purchase pilot asset management products [1] - Foreign individual investors using funds from domestic sources must provide proof of residence, employment, or study in Hainan Free Trade Port for at least one year, along with proof of RMB income from domestic sources [1] - Issuing institutions are required to fulfill active management responsibilities and are prohibited from providing channel services to foreign institutions or individuals [1]