China introduces financial measures to strengthen opening up in Hainan

China has issued a guideline to support higher-level reform and opening up in Hainan Province with financial measures and promote the establishment of a financial policy and institutional framework compatible with the Hainan free trade port.

Some 33 measures were introduced in the guideline jointly issued by the central bank and three government agencies. The measures are aimed at improving the convertibility of renminbi (RMB), fine-tuning the financial market and enhancing the opening up of the financial sector in Hainan.

To increase RMB convertibility, the guideline supports overseas investors to invest in asset management products in the port, including wealth management products, private equity management products, public offering securities investment funds and insurance asset management products.

The country will support overseas individuals working in the port to conduct various investments in China, including securities investment, according to the guideline.

Qualified enterprises from Hainan will be supported to go public through initial public offerings and public funds will be offered support to settle in Hainan.

The guideline also encourages overseas financial institutions to settle in Hainan and supports the establishment of joint venture banks and the pilot of a bank account system integrating local and foreign currencies as well as encouraging pilot projects in green finance innovation.