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Hainan Energy Exchange completes first online transaction between non-residents

HIEE was founded in July 2019 by three Chinese companies

HAIKOU, June 10. /TASS/. Hainan International Energy Exchange (HIEE) completed the first online transaction between non-residents - two foreign companies that have placed orders in a test mode, reported the Hainan Daily. 

According to the newspaper, the parties have agreed on the sale and purchase of 25 tonnes of cathode copper (used for the manufacture of electrical products).

The transaction was made through "Hainan Registration and Clearing Company" through a free trade deposit account (enjoys preferential treatment in foreign exchange settlements). The financial transaction, the transfer of goods into ownership and the repayment of the loan was carried out with the support of Hainan regional financial regulator, with the assistance of the provincial foreign exchange control department, and the representative office of the People's Bank of China (Central Bank) located in Haikou.

As HIEE commented, clearing online transactions between non-residents has become a "bold innovation" that will contribute to the internationalization of energy and natural resource trade on Hainan. "We will continue to cooperate with the competent authorities, work to optimize business regulations, taking into account risks and market conditions. Our organization will help facilitate international trade and cross-border movement of capital in Hainan's Free Port," the management of the exchange said.

Hainan Energy Exchange is one of several major sites in the southernmost province of China, engaged in accounting for transactions and providing mutual settlements in areas such as energy, securities, financial assets and intellectual property. HIEE was founded in July 2019 by three Chinese companies - Yankuang Group, China Huaneng and the State Investment and Energy Corporation (SPIC), which are involved in the supply of raw materials, electricity or energy. By April, about 750 companies were registered on it and deals worth 183.2 billion yuan (about $ 28.5 billion) were inked.

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