BEIJING: The central government on Friday launched a series of financial measures to turn Hainan Free Trade Port into a focal point of China’s deepened reforms, showing the nation’s latest efforts to further open up to the world, said experts.
The People’s Bank of China, together with three other top financial regulators, released on Friday a guideline with 33 detailed measures, which are set to further facilitate free trade in Hainan, perfect its financial market system, further open up its financial market, enhance innovation, improve financial services and strengthen financial regulation. The guideline will also help to strengthen Hainan’s weak links and consolidate its financial base, the central bank said on its official website.
Chi Fulin, president of the Haikou-based China Institute for Reform and Development, said that financial opening-up is integral to systematic policy innovation in Hainan. In order to facilitate the flow of cross-border capital, financial reform and innovation is vital while offshore financial businesses should play a bigger role in Hainan, he said.
Under the recently announced guideline, the financial market in Hainan should shoulder more responsibility in serving the real economy. As such, competitive companies in Hainan are encouraged to go public or to expand via the multi-tranche equity market in the area, according to the guideline. Mergers and acquisitions aimed at transformation and industrial upgrading are supported, while qualified companies based in Hainan will be encouraged to issue corporate bonds.
Further financial opening-up is another highlight of the guideline. Banks in Hainan are encouraged to introduce qualified overseas strategic investors to improve their equity structure. By working more closely with insurers in the Hong Kong and Macao special administrative regions, Hainan should seek opportunities in offshore reinsurance businesses.
– The Daily Mail-China Daily News exchange item
