BEIJING, June 7 (Xinhua) -- Hainan’s deepening reform and operning-up is moving at full speed and with no doubt, financial services and innovation would be a key elememt in building Hainan a free trade port with Chinese characteristics.
Informed sources recently told reporters of China Securities Journal that financial regulatory authorities, including the People's Bank of China, China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission, will soon introduce a series of policy and measures to support the constrcution of Hainan free trade port.
This would make Hainan become a new testing ground for offshore financial services, cross-border financial services, and financial technologies in China, according to experts and financial insiders.
-- Detailed measures to be unveiled
Recently published guidelines on supporting Hainan to deepen up reform and further open up to the outside world has vowed to build the southern island province into a new example of reform and opening-up, and supporting measures on financial services and innovations are about to be unveiled.
Shen Xiaoming, governor of Hainan province, recently stressed that financial reform is the most difficult part in building a free trade port and finance is also one of Hainan’s weak points. Hainan should speed up establishement of an account system which not only allows free flows of business funds but also complies with regulatory requirements to facilitate the free trade port construction.
Judging from worldwide experience, offshore financial services is the core of free trade port construction, according to Cao Xiaolu, an expert at the Research Institute for the Free Trade Port with Chinese Characteristics of Hainan University.
Cao suggests that Hainan push forward the development of fund-raising and rental services that focus on commercial aviation and aircraft rental and build an offshore assets trading center. Hainan should also build an offshore renminbi-based assets trading center as well as an international offshore financial center through developing a financial services industry with special oceanic characteristics. Hainan could also develop settlement services for going-out enterprises under the Belt and Road Initiative, Cao said.
-- Financial institutions play their roles
Experts believe that financial institutions and talents are indispensable for supporting measures to take effect.
Governor Shen pointed out that Hainan should study market access for financial institutions and encourage more financial entities to come and settle in the free trade port.
Hainan provincial government, Alibaba Group, and Ant Financial Services Group recently reached a strategic agreement to deepen cooperation in areas of economic development, social governance, and services to improve people's livelihood, of which digital economy, intelligent service industry, information smart island, and e-commerce would be of particular importance.
Chen Siqing, Chairman of Bank of China (BOC), declared that the bank will give full support to Hainan in deepening reform and opening up.
BOC will actively support Hainan in infrastructure, tourism, health care, high-tech industry development, increase funding support for key projects, help bring Hainan world-class think tank, introduce Hainan to its high-end clients all over the world and support cooperation between Hainan and major domestic and foreign enterprises.
-- Risk control vital for sailing further
Experts believe that the free trade port of Hainan will likely become a "new testing ground" for financial opening-up especially offshore financial services and financial technology. At the same time, financial risk control is also of great importance.
Yi Gang, head of the People's Bank of China, said that financial risks may be effectively prevented or minimized by strengthening financial regulation, thereby maintaining stability in China's financial sector and enhancing its competitiveness.
A balance must be struck between preventing financial risks and promoting financial innovation, according to Cao, noting that local government should take greater responsibility for regulating financial services at grass-roots level, and strengthen pre-warning of risks and control of public opinions by adopting big data-based approaches.
Zhou Yanli, former Vice Chairman of the China Insurance Regulatory Commission recommends that financial regulatory authorities step up financial regulation and associated technology application in response to the challenges posed by new financial technologies and new modes of operation. (Edited by Niu Huizhe, niuhuizhe@xinhua.org)
A single purchase
