HAIKOU /China/, January 28. /TASS/. The Hainan Free Trade Port Fund has created five subsidiaries that will support the development of the province's real economy. This was reported by the Haikou Daily newspaper.
According to the newspaper, the organization allocated over 1.08 billion yuan (over $159 million at current exchange rate) and employed social capital worth 2.52 billion yuan (about $372 million). Eventually nine more similar subsidiaries will be created with funding of 2.08 billion yuan ($307 million) and social funds of 4.88 billion yuan ($720 million).
In 2023, Hainan will enhance coordination between local financial institutions, including investment banks, the provincial government said. One of their key tasks will be to form funds for economic support and stimulation of innovative and ecological development.
It is expected that with the help of the government a whole network of such small organizations will appear on the island in the near future. They will be based mainly on the territory of 11 innovation zones of Hainan and solve many problems of strategically important enterprises.
It is also planned to accelerate the implementation of projects in the field of intensive development of rural insurance and increase its accessibility. Special attention will be paid to lending programs with the participation of international organizations such as the Asian Development Bank and the World Bank.
The Hainan Free Trade Port Fund was founded in February 2022 with the participation of the provincial finance department and has a single founding company. Its authorized capital was 10 billion yuan (about $1.5 billion at current exchange rates). Its mission is to efficiently manage state assets and coordinate budget projects.