The People's Bank of China: Exploring the expansion of Hainan residents' autonomy in using foreign exchange

  China News Agency, Beijing, June 8th (Reporter Wang Enbo) Pan Gongsheng, vice governor of the People's Bank of China and director of the State Administration of Foreign Exchange, revealed in Beijing on the 8th that he introduced the financial policies of the Hainan Free Trade Port and will explore the expansion of Hainan residents' personal use of foreign exchange right.

  Pan Gongsheng said at the press conference of the State Council Information Office that the overall financial policy framework for the construction of Hainan Free Trade Port mainly includes four aspects.

  First, it serves cross-border trade and investment and financing liberalization and facilitation. He said that high-level current account opening and capital account opening policies and cross-border capital flow management policies are the core financial policies in the construction of Hainan Free Trade Port. With regard to cross-border trade, China’s current account capital exchange has been completely opened up. Therefore, the exchange of funds for goods trade and service trade in the Hainan Free Trade Port should be highly facilitated. The authenticity audit conducted by commercial banks is fully engaged in pre-examination and post-event verification. At the same time, improve the revenue and expenditure management policies for new cross-border trade forms such as offshore trade and re-export trade. Build a policy environment that facilitates the operation of global settlement centers of multinational companies.

  In terms of cross-border direct investment, the official will fully implement the "foreign access national treatment + negative list" foreign investment management system. To explore new forms of cross-border direct investment that are suitable for market demand, the two systems of QFLP (Qualified Overseas Limited Partners) and QDLP (Qualified Domestic Limited Partners) will be piloted in Hainan Free Trade Port.

  In terms of cross-border financing policies, Pan Gongsheng revealed that he will establish a new cross-border financing system in Hainan, pilot a cross-border financing policy management framework for merger transactions, implement a unified macro-prudential management policy, and gradually realize independent cross-border financing by market players. At the same time, with the advancement of the construction of Hainan Free Trade Port, explore the expansion of Hainan residents' autonomy in using foreign exchange. Considering that the financial opening policy has a strong spillover, it needs to be based on the existing local and foreign currency accounts and free trade accounts. The official will also establish a fund "electronic fence" to build a basic platform for Hainan Financial to open to the outside world.

  Second, it serves the financial service system and financial service capacity building that Hainan has opened to the outside world. Take the lead in implementing the policy of expanding the opening of the financial services industry in Hainan Free Trade Port and enriching Hainan's financial business. Cultivate the financial capabilities of commercial banks and other financial institutions to serve the open economy, and support the construction of international energy, shipping, and commodity trading platforms.

  Third, the key industrial policy orientation around building a modern industrial system in Hainan. It is necessary to strengthen financial support, reform and innovation, promote the industrial aggregation scale and industrial competitiveness of Hainan's key development industries, and innovate and develop trade finance, consumer finance, green finance, and technology finance.

  Fourth, build a financial risk prevention and control system constructed by the Hainan Free Trade Port. Pan Gongsheng emphasized the need to build a monitoring, early warning and evaluation system for cross-border capital flows, a macro-prudential management system, and an anti-money laundering, anti-terrorist financing, and anti-tax evasion review mechanism. Establish a financial supervision and coordination mechanism suitable for the construction of Hainan Free Trade Port. (Finish)