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Chinese Authorities In The First Half Of The Year Simplified Currency Control In Hainan Province

Chinese Authorities In The First Half Of The Year Simplified Currency Control In Hainan Province

The authorities of the southern Chinese province of Hainan in the first half of this year began successfully implementing new measures of simplified currency regulation as part of the creation of a free port on this island, according to the announcement on a briefing in the press office of the State Council of China by Wang Chunying, Deputy head of the state administration for currency control of China.

This includes canceling the registration of every transaction on foreign debt obligations of non-financial enterprises in Hainan, a pilot program that allows transnational transfers of domestic credit assets and simplifying the procedure for registering foreign exchange funds for foreign direct investment on the island.

According to the plans of the provincial authorities, in the future, Hainan will facilitate foreign exchange receipts and payments in the trade of goods and services, continue to simplify the regulation of transactions with qualified foreign limited partners (under the program Qualified Foreign Limited Partner, QFLP), and implement a pilot project of cooperation with qualified domestic limited partners (under the program Qualified Domestic Limited Partner, QDLP).

"We will continue to test even more advanced openness policies in the Hainan free trade port, and study measures to facilitate cross - border financing of enterprises," Wang Chunying was quoted as saying by the Hainan Zhibao newspaper. "In the future, some new measures will be implemented here for the first time."

Promoting investment freedom and financial capital flows in Hainan are Central policy points of the Chinese government as part of an ongoing project to develop the region. In early June, the Central Committee of the Communist Party of China and the State Council of China published a General program on the creation of a free port on Hainan, according to which the island should implement a simplified investment system and liberalize the financial sector of the economy. According to the program of the Chinese authorities, the administration of the island is going to form an effective system for performing several important socio-economic tasks by 2025, and in another ten years - to finally strengthen innovative mechanisms for the development of the region.

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