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Hainan free trade account transactions up by 130% in 2020

Ten big financial institutions are engaged in servicing the transactions of companies involved in the implementation of relevant foreign trade projects on the island

HAIKOU, February 24. /TASS/. Free trade banking transactions on Hainan in 2020 exceeded 31.3 billion yuan (approximately $ 4.8 billion at current exchange rates), an increase of 130%, reported the Hainan Daily with reference to the People's Bank of China (Central Bank).

According to the authorities, ten big financial institutions are engaged in servicing the transactions of companies involved in the implementation of relevant foreign trade projects on the island. The number of premium clients — large enterprises operating in priority and strategically important industries — grew by 139% over the year, to 103 commercial organizations.

"We will continue to pursue a policy aimed at improving the quality of services in servicing free trade accounts and will encourage banks to more intensively introduce innovative methods," the PBC regional head office in Haikou said.

According to the estimates of the financial regulator, more than 19,300 main and over 59,700 auxiliary free trade accounts have already been registered on Hainan, which hold about 8.64 billion yuan (about $ 1.33 billion). The amount of the corresponding deposits in 2020 increased by almost 83 times. During the same period, banks provided brokerage services for 1.77 billion yuan ($ 274 million) in sales and purchases, seven times the 2019 figure.

In accordance with the General Program for the creation of Hainan's free trade port, by 2025 an effective mechanism will be formed on the island to boost sustainable and long-term growth. One of the main tasks is to create an advanced international financial center on the territory of the southernmost Chinese province. 

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