The People's Bank of China, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange issued the "Opinions on Financial Support for Hainan's Comprehensive Deepening of Reform and Opening-up"

  In order to thoroughly implement the decisions and deployments of the Party Central Committee and the State Council, with the approval of the State Council, the People's Bank of China, China Banking Regulatory Commission, Securities Regulatory Commission, and Foreign Exchange Administration recently issued the "Opinions on Financial Support for the Comprehensive Deepening of Hainan's Reform and Opening-up" (hereinafter referred to as the "Opinions").

  Hainan is the largest special economic zone in my country and has the unique advantage of implementing comprehensively deepening reforms and experimenting with the highest level of openness policies.

The "Opinions" promoted the level of RMB convertibility, supported the liberalization and facilitation of cross-border trade and investment, improved Hainan's financial market system, expanded the opening up of Hainan's financial industry, strengthened financial product and service innovation, improved financial service levels, strengthened financial supervision and prevention to resolve finance 33 specific measures were proposed in six aspects including risks.

The promulgation of the "Opinions" basically established the "four beams and eight pillars" of financial support for Hainan's comprehensive deepening of reform and opening up, which will help make up for Hainan's financial shortcomings and consolidate Hainan's financial foundation.

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annex

Opinions of the People's Bank of China, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, and the State Administration of Foreign Exchange on Financial Support for Hainan's Comprehensive Deepening of Reform and Opening-up

Yinfa (2021) No. 84

  People's Government of Hainan Province:

  In order to thoroughly implement the spirit of General Secretary Xi Jinping's important speech at the celebration of the 30th anniversary of the establishment of a special economic zone in Hainan, implement the "Guiding Opinions of the Central Committee of the Communist Party of China and the State Council on Supporting Hainan's Comprehensive Deepening of Reform and Opening Up" and the "Overall Plan for the Construction of Hainan Free Trade Port" Important strategic arrangements to support Hainan’s comprehensive deepening of reform and opening up, and to promote the establishment of a financial policy and institutional framework compatible with Hainan’s free trade port. With the consent of the State Council, the following opinions are hereby provided.

1. General principles

  (1) Support the development of Hainan's real economy.

Persist in deepening the structural reform of the financial supply side, innovating financial policies, products and tools, focusing on the development of tourism, modern service industries and high-tech industries, and focusing on supporting marine industries, medical health, tourism exhibitions, transportation, modern agriculture, service outsourcing, etc. Focus on the development of key areas, promote the establishment of an open and ecological service industry system, promote the optimization and upgrading of the service industry, and promote high-quality economic development.

  (2) Serving the construction of Hainan Free Trade Port.

Focusing on the strategic positioning of building a comprehensively deepening reform and opening up pilot zone, a national ecological civilization pilot zone, an international tourism consumption center, and a major national strategic service guarantee zone, it will serve the capital exchanges between other regions of the country and the Hainan Free Trade Port, as well as the facilitation of cross-border trade and investment liberalization , To implement various financial reform and opening and innovation measures in phases and steps to promote Hainan to become a new benchmark for comprehensively deepening reform and opening up in the new era.

  (3) Deepen financial reform and opening up with institutional innovation as the core.

Adhere to the principle of benchmarking internationally and deepen financial reform and opening up.

In accordance with the working ideas of combining far and near, step by step, and highlighting the key points, we will take the lead in the free and convenient cross-border capital flow, the facilitation of investment and financing exchanges, and the opening up of the financial industry, and actively explore more flexible financial policy systems, regulatory models, and management systems .

  (4) Strengthen the construction of the financial risk prevention and control system.

Adhere to bottom-line thinking, work steadily and step by step, improve the cross-border capital flow risk prevention and control system that is compatible with financial open innovation, and under the premise of ensuring effective supervision and risk control, promote various financial open innovation measures in a steady and orderly manner, and coordinate arrangements Keep the pace and progress of opening up, advance one by one when mature, and firmly hold the bottom line of preventing systemic financial risks.

2. Improve the convertibility of the renminbi and support the liberalization and facilitation of cross-border trade and investment

  (5) Further promote the facilitation of cross-border trade in goods, service trade, and new international trade settlements.

In accordance with the principle of “knowing customers, knowing business, and due diligence”, the prudential and compliant Hainan Free Trade Port Bank can conduct the settlement of real and compliant goods trade and service trade for high-quality customers with payment instructions on a trial basis, so as to realize the bank’s authenticity review and transfer of pre-examination For post-checking.

Implement a fund payment and transfer system that is compatible with cross-border service trade.

Support the Hainan Free Trade Port pilot bank to further facilitate the cross-border settlement of new international trade in true compliance on the basis of strengthening the hierarchical management of customers.

  (6) Explore foreign exchange management for cross-border investment that adapts to new forms of market demand.

Under the premise of controllable risks, Qualified Foreign Limited Partners (QFLP) in the Hainan Free Trade Port are allowed to freely remit and remit funds in accordance with the balance management model, and simplify foreign exchange registration procedures.

The Hainan Free Trade Port will be included in the Qualified Domestic Limited Partnership (QDLP) pilot, and the Hainan Free Trade Port will be given a basic quota for the QDLP pilot, and additional QDLP quotas can be issued to it every year according to certain rules.

  (7) Improve the policy framework for the macro-prudential management of full-scale cross-border financing.

The upper limit of cross-border financing for non-financial enterprises (excluding real estate enterprises and local government financing platforms) registered in the Hainan Free Trade Port can be appropriately increased to achieve a higher scale of cross-border capital integration.

  (8) Explore pilot projects for cross-border asset management business.

Support foreign investors to invest in wealth management products issued by financial institutions in the Hainan Free Trade Port, private equity asset management products of securities and futures operating institutions, public securities investment funds, insurance asset management products and other asset management products.

  (9) Explore the relaxation of policies for personal cross-border transactions.

Support foreign individuals employed in the Hainan Free Trade Port to carry out various types of domestic investment including securities investment.

Qualified non-residents are allowed to purchase real estate in the Hainan Free Trade Port on the principle of actual needs, and foreign exchange facilities are provided for qualified non-residents to purchase houses.

Research to further facilitate the personal use of foreign exchange by Hainan residents.

  (10) To carry out a pilot project of a cross-border capital pool business with the integration of domestic and foreign currencies in Hainan.

Support qualified multinational enterprise groups to conduct centralized adjustment and pooling of domestic and foreign currency funds surplus and shortages between domestic and foreign members, exchange funds in special accounts on actual needs, and implement two-way macro-prudential management of cross-border capital flows.

  (11) Support qualified non-bank financial institutions to carry out pilot projects for foreign exchange settlement and sales.

Qualified non-bank financial institutions can participate in the inter-bank foreign exchange market after meeting certain conditions, and conduct RMB-foreign exchange spot business and related derivatives transactions in compliance with laws and regulations.

3. Improve Hainan's financial market system

  (12) Support the development of Hainan's banking industry.

Support Hainan to introduce national joint-stock commercial banks to set up branches.

Study the reform of Hainan Rural Credit Cooperatives, and promote the implementation of its strategy of better serving rural revitalization.

Strengthen financial services in areas such as the marine industry and high-tech industries.

Support Hainan to attract foreign investment and participate in local asset management companies.

  (13) Support qualified Hainan enterprises to go public for the first time and grow through the multi-level equity market.

Continue to support the merger and reorganization of Hainan enterprises to achieve transformation and upgrading.

  (14) Support Hainan enterprises to issue bonds for financing.

Actively support qualified Hainan enterprises to issue corporate credit bonds in the inter-bank market and the exchange market to further increase the scale of direct financing.

Support market entities to expand their independent choice of trustee management institutions and trading venues.

Support Hainan enterprises to revitalize their stocks and expand funding sources through asset securitization.

  (15) Support the development of related funds in Hainan.

Support the establishment of public funds in Hainan, support qualified institutions to apply for the establishment of joint venture public fund management companies in Hainan in accordance with the law, and support qualified overseas financial institutions to wholly own or hold shares in futures companies in Hainan.

For private equity investment funds investing in key areas such as Hainan Seed Industry and Modern Agriculture, a green channel for registration and filing will be given.

4. Expand the opening up of Hainan's financial industry

  (16) Expand the opening up of the banking industry.

Encourage overseas financial institutions to settle in Hainan and support the establishment of Sino-foreign joint venture banks.

Support Hainan's banks to introduce qualified overseas strategic investors, improve the equity structure, improve corporate governance, and further increase the degree of opening up of Hainan's banking industry to the outside world.

  (17) Expand the opening up of the insurance industry.

Strengthen research on the in-depth cooperation between Hainan and Hong Kong and Macau in the insurance market.

Learn from international experience and common practices, explore and formulate solvency regulatory policies suitable for offshore reinsurance business.

  (18) Establish a fast track for banking access matters, establish a time-limited settlement system for access matters, and improve the efficiency of examination and approval.

  (19) Implement national treatment requirements for foreign investment, and support qualified foreign-funded institutions to obtain payment business licenses in Hainan in compliance with laws and regulations.

  (20) Allow the head offices of Chinese-funded commercial banks that have obtained offshore banking qualifications to authorize branches in Hainan Free Trade Port to conduct offshore banking services.

5. Strengthen financial product and service innovation

  (21) Encourage the innovation of RMB financial products and businesses facing the international market, and expand the scope of overseas RMB investment in Hainan's financial products.

Under the premise of compliance with laws and regulations, Hainan market entities are allowed to issue RMB-denominated bonds and other products abroad to introduce overseas RMB funds, focusing on supporting the development of high-tech, medical and health, tourism, exhibition, and transportation industries.

  (22) Steadily expand the scope of cross-border asset transfer.

Under the framework of macro-prudential management, and in accordance with the principles of risk control and scale adjustment, pilot projects in the Hainan Free Trade Port will expand the scope of credit assets that can be transferred out across borders and the scope of participating institutions.

  (23) Support Hainan to explore and promote the pilot program of mortgage guarantees for state-owned agricultural land use rights for land reclamation, and promote the improvement of registration and issuance of rights, mortgage guarantee registration, land transfer platform construction, and mortgage value evaluation.

  (24) Innovatively develop insurance business.

Support qualified insurance institutions to set up insurance asset management companies in Hainan and issue RMB-denominated asset management products overseas under the premise of account independence and risk isolation.

Support Hainan insurance institutions to carry out overseas investment business.

Encourage insurance institutions to strengthen innovation and develop special insurance products that meet the needs of Hainan in areas such as environment, agriculture, tourism, health, and pensions.

  (25) Develop green finance.

Encourage innovative green finance businesses to be piloted in Hainan, and support the construction of a national ecological civilization pilot zone.

Increase investment and financing support for ecological and environmental protection, especially the response to climate change.

  (26) Support the development of science and technology finance and promote the development of marine science and technology.

Under the premise of compliance with laws and regulations and risk control, Hainan legal person banks are encouraged to strengthen cooperation with venture capital institutions, explore new models of technology finance, and support Hainan to strengthen deep-sea technology innovation.

Innovative technology financial policies, products and tools.

  (27) Strengthen the innovative application of financial technology under the premise of compliance with laws and regulations and controllable risks.

Support the Hainan Free Trade Port to carry out a pilot financial technology innovation business under the coordination of the financial management department, and steadily promote the deep integration of technology and financial services.

6. Improve the level of financial services

  (28) Support the exploration and development of a pilot bank account system combining domestic and foreign currencies in Hainan.

  (29) Support commercial banks, China UnionPay and all parties in the industry to promote the development of small and micro enterprise cards, rural revitalization cards and other businesses, focusing on financial services for small and micro enterprises, and payment and settlement, financing credit enhancement, and enterprises serving the "three rural" industries The value-added service system and other links meet the needs of small and micro enterprises and the Internet and mobile payment settlement of the "three rural" industries.

  (30) Improve the facilitation level of cross-border mobile payment.

Facilitate the use of mobile electronic payment tools by overseas residents in Hainan.

Support domestic mobile payment institutions to conduct business overseas, and gradually expand their regional coverage of cross-border mobile payments through overseas participating institutions of the RMB Cross-Border Payment System (CIPS).

  (31) Continue to promote the establishment of a credit system for small, medium and micro enterprises in Hainan, support the construction of a comprehensive financial service platform for small and micro enterprises, and interconnect with the national "Xinyidai" platform, and do a good job in the collection and application of credit information for small and micro enterprises, and more Efficiently connect with financial services.

Deepen the construction of Hainan's rural credit system, expand the breadth of credit information coverage in rural areas, strengthen credit information services, effectively connect inclusive finance and rural revitalization strategies, and support the development of the real economy and Hainan's characteristic industries.

Support Hainan to introduce credit rating agencies with market influence.

Establish a sound credit information sharing mechanism to support the establishment of a local social credit system in Hainan.

  (32) Support Hainan to accelerate the development of modern service industries such as shipping finance and ship financial leasing.

  (33) Support the development of culture, sports, and tourism.

Strengthen financial services in the fields of culture, sports and tourism.

Establish a credit big data platform for cultural, sports, and tourism enterprises to solve the financing bottleneck caused by insufficient credit of cultural, sports, and tourism enterprises and information asymmetry with financial institutions.

Promote special bonds for the culture, sports and tourism industries, optimize the financing structure of the culture, sports and tourism industries, and gradually reduce financing costs.

Build a regional cultural and tourism financial service platform, and improve the industrial financial service system.

Aiming at the special industries of Hainan International Tourism Island such as cruise yachts, we will focus on supporting the construction of cruise yacht industry cluster parks and related public service supporting facilities.

  (34) Under the framework of the long-term real estate mechanism, support Hainan in the development of real estate investment trusts (REITs) in the housing leasing sector, encourage banking financial institutions to innovate financial products and services, and support the standardized development of the housing leasing market.

7. Strengthen financial supervision to prevent and resolve financial risks

  (35) Build a financial macro-prudential management system to strengthen the identification of major risks and the prevention of systemic financial risks.

Relying on the capital flow information monitoring and management system, establish a sound capital flow monitoring and risk prevention and control system.

Improve the anti-money laundering, anti-terrorist financing and anti-tax evasion systems and working mechanisms, study the establishment of a money laundering risk assessment mechanism, and regularly assess the risks of money laundering and terrorist financing.

Establish a financial supervision and coordination mechanism suitable for the construction of the Hainan Free Trade Port, effectively perform territorial financial supervision responsibilities, and ensure that risk prevention and control capabilities are compatible with financial reforms and innovations.

  (36) Support Hainan to set up a professional financial and bankruptcy trial institution to focus on the trial of Hainan financial and bankruptcy cases, improve the level of professional trial of financial and bankruptcy cases, and provide parties with more high-quality and efficient judicial guarantees.

  (37) Strengthen the protection of the rights and interests of financial consumers.

Support Hainan's consumer dispute mediation organizations in the banking, securities, and insurance sectors to give full play to their role and establish a fair, efficient, and convenient non-litigation third-party settlement mechanism for financial disputes.

Strengthen communication and cooperation with local people’s courts and judicial administrative departments, implement a mechanism for reconciliation of conflicts and disputes in the banking, securities, and insurance fields, give full play to the professional advantages of financial industry mediation organizations, and explore the establishment of a judicial confirmation system for financial industry dispute mediation agreements.

Carry out centralized financial literacy popularization activities, and establish a financial literacy popularization education demonstration base in Hainan.

Further play the role of an education base for securities and futures investors.

People's Bank of China

China Banking and Insurance Regulatory Commission

China Securities Regulatory Commission

State Administration of Foreign Exchange

March 30 2021

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