Hainan's Sanya sets up first foundations for certified overseas partners

 Hainan's Sanya for the first time accepted registration documents for two financial institutions for certified foreign partners (QFLP) — foreign companies entitled to invest through RMB funds in Chinese private business in order to promote innovative projects, reported the Hainan Daily.

 

According to the newspaper, both subsidiaries were formed separately by two Chinese financial institutions specializing in high-tech and science-intensive projects — investment banks Zhenfund and MSA Capital. They registered their divisions in the Sanya Central Business District and simultaneously submitted project documents to the Asset Management Association of China (AMAC). "We expect that many leading investment funds will soon settle in Sanya," said a spokesman for the administration of the business center.

 

As he explained, in recent years, Hainan has taken a number of measures to make the procedures for registering commercial activities for foreign companies as easy as possible, to reduce restrictions and eliminate discriminatory factors, and to expand the list of areas available to foreign capital. "In addition, the authorities are making every effort to implement a policy to create new benefits for investors," the official added.

 

It is expected that in the near future, many funds will be set up in Sanya, specializing in projects with the participation of certified foreign partners. Thus, as the observers of the "Hainan Daily" write, the province is taking another important step towards the formation of a regional cluster that can simplify and improve the efficiency of the movement of transnational capital flows.

 

In April 2018, Chinese President Xi Jinping announced the launch of Hainan's project to build a pilot free trade zone. According to the authorities' plan, the creation of a pilot zone will give impetus to the processes of globalization of the island's economy and increase the attractiveness of the Chinese province for foreign investors. It is expected that by 2050 Hainan will become a unique international cluster with an advanced economic system, which includes a free trade zone, campuses of the best universities, the most modern scientific laboratories and the headquarters of world corporations.