Financial support benefits the development of the Hainan FTP

 According to the Haikou Central Sub-branch of the People’s Bank of China, in 2020, Hainan’s social financing scale was 97 billion yuan, up 1.6 billion yuan from the previous year. In terms of the composition of the social financing scale, the major drivers of the increase were loans and securities financing of financial institutions. In 2020, Hainan’s local governmental securities increased by 39.9 billion yuan, comprising 41.1% of Hainan’s social financing scale, and accounting for the increase in the social financing scale compared with the same period of the previous year. 

In terms of deposits and loans, Hainan’s balance of loans in Chinese and foreign currencies reached 998.2 billion yuan, up 46.1 billion yuan compared with the beginning of 2020 and up 4.8% year-on-year, which was also 1.3% higher than Hainan’s economic growth in 2020. Hainan’s balance of deposits in Chinese and foreign currencies reached 1.0312 trillion yuan, up 5.9% year-on-year. The province's deposits and loans also increased steadily.

The function of the Hainan Free Trade Port Account (FT Account) is continuing to improve, and its business scale is also clearly increasing. At present, 10 commercial banks have provided FT Account financial services.In 2020, 7,235 master-accounts and 21,648 accounts were opened, and capital receipts and payments reached 31.33 billion yuan, up 130% year on year. High-end customers increased from 43 at the end of 2019 to 103 at the end of 2020, up 139% year on year.

Driven by the favorable policies of the Hainan Free Trade Port, Hainan has implemented many measures in service and trade, improving cross-border trade facilitation and implementing cross-border direct investment & cross-border financing facilitation measures, and more.

For example, Hainan has implemented a pilot program to register foreign exchange directly with banks for overseas listings, and carried out pilot QFLP (Qualified Foreign Limited Partner) reform. In 2020, two QFLP funds were opened in Hainan with a total capital of 99.95 million US dollars. Preventing risks in cross-border capital flow is one of the most important missions for the finance industry in support of the development of the Hainan Free Trade Port. Hainan has established the first fund transfer information monitoring system in China, and in 2020, the system monitored about 5 million fund transfers arriving in and departing from Hainan Island daily, totaling around 30 billion yuan.