HAIKOU, December 2. /TASS/. The Hainan authorities have allowed national enterprises to list securities on foreign stock exchanges. This is stated in the decree "Experimental Control Methods for the Registration of Hainan Free Trade Port Companies on Foreign Stock Markets," issued by the China's State Administration of Foreign Exchange (SAFE).
As specified in the document, the listing of commercial organizations registered on the island is possible only if several rules are observed. First, the company must obtain special permission from the Securities Oversight Committee. In addition, it vows to buy or sell only those stocks that are allowed to trade under Chinese law.
According to the order of the Hainan administration, any company registered on the island that intends to carry out an initial or additional issue abroad, or to buy back its own shares from another commercial organization or individual, must provide a document of registration on a foreign stock exchange. On its basis, the servicing bank will create a special account through which transactions will be carried out.
If resident shareholders plan to increase or decrease their stake in the assets of a company that has listed its securities on foreign exchanges, they must notify the authorities of their intention 20 working days before the transaction. Its registration is automatically registered by the regional currency regulator.
As follows from the resolution, banks and companies registered on Hainan must keep documents on registration of securities abroad for five years and be ready to submit them for verification to competent authorities.
In April 2018, President Xi Jinping said that the Chinese authorities intend to actively involve Hainan in globalization and to draw foreign investors to the island province. By 2050, according to the authorities, the island should become a unique international cluster with an advanced economy, developed tourism, top-notch scientific, technical and financial potential, and modern medicine. The branches of the best universities and offices of the most powerful corporations in the world will be located on the Island of Hainan.
By 2025, the Chinese government intends to create an "international center for tourism and consumption" on Hainan. In order to do so, the "Eastern Hawaii" with their unique natural landscapes, thick rainforests and great climate will establish a developed network of hotels, which blend perfectly with white sandy beaches stretching along the coastline. The combination of an exotic subtropical nature and a modern eco-friendly infrastructure will boost tourist inflow to the island from the most distant parts of the world.