Clarifying Financial Support for Foreign Investment

Yang Wanli, Deputy Director of the Financial Affairs Office of the Hainan Provincial Committee of the Communist Party of China, explained that the introduction of this Regulation will have a positive impact on improving financial services for foreign-invested enterprises and promoting foreign investment in Hainan.

Specifically, the Regulation includes the following measures:

1. Better meeting the cross-border capital flow needs of foreign-invested enterprises. The Regulation supports financial institutions in fully leveraging Hainan Free Trade Port’s financial opening policies to enhance service efficiency in areas such as free and convenient cross-border capital flows. It also expands the coverage and application scenarios of Hainan’s multi-functional Free Trade Account (EF Account).

2. Helping foreign-invested enterprises further broaden investment and financing channels. The Regulation allows foreign-invested enterprises in Hainan Free Trade Port to enjoy high-level pilot measures for cross-border trade and investment, such as exemption from foreign exchange registration for domestic reinvestment. It supports foreign-invested enterprises in obtaining financing through combined pledges of intellectual property, equity, and related physical assets. It also encourages insurance institutions to optimize products and services based on the characteristics and needs of foreign-invested enterprises.

3. Attracting eligible foreign-invested enterprises to engage in financial business in Hainan. The Regulation permits qualified overseas securities, fund, and futures institutions to establish wholly-owned or joint-venture financial institutions in Hainan Free Trade Port. It supports foreign institutions in setting up reinsurance companies or branches in Hainan in accordance with the law. It also encourages financial institutions in the insurance sector to collaborate with foreign institutions in developing cross-border medical insurance products and supports various funds in engaging in equity investment cooperation with foreign-invested enterprises.
   
   

Additionally, the Regulation enriches and optimizes service safeguards in areas such as Qualified Foreign Limited Partners (QFLP), equity investment, and reinvestment. It supports efforts to explore ways to improve cross-border payment efficiency and encourages banking institutions to optimize related services, providing more convenient and efficient payment tools and methods.