The island province of Hainan has flagged the launch of trials for cross-border asset management operations as part of a broader range of ambitious financial opening and reform measures.
The Hainan province government issued the “Implementation Plan for Thorough Implementation of the Opinions for the Financial Support of the Comprehensive Deepening of Reform and Opening of Hainan” (关于贯彻落实金融支持海南全面深化改革开放意见的实施方案) on 1 September.
The Plan calls for “exploring the undertaking of cross-border asset management operation trials,” as well as “raising the level of convertibility of the renminbi, supporting cross-border investment liberalisation and facilitation and expanding the external opening of the Hainan finance sector.”
The Implementation Plan said that cross-border asset management trials would involve “opening accounts for offshore investors under the precondition of closed funds and risk segregation,” to facilitate investment in wealth management products and securities futures issued by financial institutions in the Hainan Free Trade Zone, for the operation of privately offered asset management products, publicly offered securities investment funds and insurance asset management products.
Other measures outlined include:
- Further driving cross-border goods and services trade and making new forms of international trade settlement more convenient;
- Encouraging high-quality enterprises to use the renminbi to engage in cross-border settlement of goods and services trading.
- Encouraging banks in the Hainan Free Trade Port to provide cross-border renminbi settlement services for goods and services trading by high-quality enterprises.
- Exploring new forms of cross-border investment forex management that suit the needs of the market.
- Actively undertaking trials for Qualified Foreign Limited Partnerships (QFLP).
- Allowing QFLP’s in the Hainan Free Trade Port to make free remittances of funds under a quota management model.
- Allowing enterprises that have obtained Qualified Domestic Limited Partnership (QDLP) status to undertake overseas equity investment and securities investment activities in accordance with the provisions of national policy.
With regard to “improving Hainan’s financial market system,” the Implementation Plan calls for:
- Supporting qualified enterprises to engage in initial public offerings, as well as enterprise mergers and acquisitions.
- Attracting listed companies that have certain industry advantages to Hainan.
- Attracting high-quality companies that plan to list to register in Hainan and nurture a rearguard of listed enterprises.
- Further expand direct financing and support qualified enterprises in Hainan to issue corporate-grade bonds, project revenue notes, residential rental housing special bonds, and asset-backed securities.