Hainan Free Trade Port Cross-Border Asset Management Pilot Launches Today: Key Policy Highlights Revealed

The "Implementation Rules for the Cross-Border Asset Management Pilot Business in Hainan Free Trade Port," jointly issued by the Hainan Branch of the People's Bank of China and four other departments, officially takes effect today. What are the main contents of these Implementation Rules? What are the key policy highlights? Let’s take a look at expert interpretations.

The Implementation Rules primarily focus on how to support overseas investors in investing in asset management products issued by financial institutions within the Hainan Free Trade Port. This includes which overseas investors are eligible to invest, what products they can invest in, what accounts they can use for investment, and how funds can flow in and out.

According to the rules, the cross-border asset management pilot in Hainan Free Trade Port is open to overseas institutions globally and eligible overseas individual investors, ensuring diversified investment entities. Meanwhile, the range of investable products includes privately offered asset management products of securities, fund, and futures operators with risk levels R1-R4, publicly offered securities investment funds, and insurance asset management products issued by financial institutions within the Hainan Free Trade Port.

Additionally, investment accounts are relatively flexible. Overseas investors can open RMB bank settlement accounts and free trade accounts in banks within the Hainan Free Trade Port to purchase pilot asset management products through these accounts, with encouragement for RMB-denominated pricing and settlement.

Reporters have learned that the initial pilot has set a total scale, meaning the upper limit for net inbound funds from overseas investors purchasing pilot asset management products is RMB 10 billion. Subsequently, the upper limit can be dynamically adjusted based on the economic and financial development of the Hainan Free Trade Port, the balance of payments situation, and actual market demand.

Dong Ximiao, Chief Researcher of China Merchants Union: For overseas investors, the pilot opens a new channel for investing in Chinese financial products and enriches options for RMB asset allocation. For domestic asset management institutions, the pilot can also expand their customer base and business growth opportunities.