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Hainan authorities publish 14th Five-Year Financial Industry Development Plan

The added value of the financial sector should to exceed 100 billion yuan (about $15.6 billion) by the end of this five-year plan

HAIKOU /China/, Nov. 25. /TASS/. Authorities in the southern Chinese province of Hainan have published the 14th Five-Year Plan (2021-2025) to develop the region's financial industry. The document was published by the provincial government office, the Hainan Daily newspaper reported.

According to the publication, the added value of the financial sector should exceed 100 billion yuan (about $15.6 billion) by the end of the five-year plan. The share of this sector in the province's GRP should be 10%, the number of organizations working in the financial sector should reach 1,000, and the number of people employed in the sector should reach 120,000.

The document states that the development of the financial sector should meet the requirements of the free port policy in Hainan province, and its priority will be to serve the real economy. The regional government pledges to continue introducing reforms to the financial services market, increasing its degree of openness to the international economy. The financial sector should facilitate cross-border trade and investment. At the same time, the authorities separately noted that by 2025 the province will have an effective mechanism to prevent systematic risks in the financial sector.

According to the five-year plan, the government will promote the growth of financial institutions in the region, as well as attract strategic investors. The province intends to create a multi-level capital market, as well as mechanisms to connect the region's financial sector with the offshore markets of China and foreign countries along with foreign exchange markets.

The published document states that Hainan is to become a pilot zone for testing cross-border payments using the digital yuan. The region intends to create a carbon market, develop "green finance" to support environmental projects and activities, encourage capital investment in the sector, and promote investment in projects to respond to climate change."

Financing aerospace and aviation projects, water transport and consumer lending are among the priorities. Another priority is servicing the real economy, notably in tourism and other sectors. In addition, regulators should develop a policy to provide financial services to high-tech enterprises, resident companies of technology parks, clusters and experimental zones located in Hainan.