Recently, the Hainan Branch of the People's Bank of China, together with five government departments, issued the 'Implementation Rules for the Pilot Cross-border Asset Management Business in the Hainan Free Trade Port'. One of the highlights of the Rules is that international investors can invest in a variety of products made by pilot institutions in the Hainan Free Trade Port. This policy announcement has attracted widespread market attention. The Hainan Branch of the People’s Bank of China further interpreted policy highlights at a 3rd quarter press conference held on July 30.

According to information released at the press conference, the 'Implementation Rules' focus on policy support for international investors in asset management products issued by financial institutions in the Hainan Free Trade Port under the overall framework of the document "Guiding Opinions on Regulating the Asset Management Business of Financial Institutions". Content mainly involves guidelines on which international investors are eligible to invest, what products they can invest in, what accounts to use for investment, how funds flow in and out, how to prevent and control risks, and how to protect international investors.

Diversifying Investment Entities

The cross-border asset management pilot program is open to overseas institutions and qualified individual investors worldwide.

Wide Range of Investment Products

The range includes private asset management securities products, funds and futures institutions with risk levels of R1-R4, publicly offered securities investment funds, and insurance asset management products.

More Flexible Investment Accounts

International investors can open RMB bank settlement accounts (NRA accounts) and free trade accounts (FT accounts) at banks in the Hainan Free Trade Port, and use these accounts to purchase pilot asset management products. Pricing and settlement in RMB is encouraged in order to promote the internationalization of the currency.

Well Regulated Pilot Program Scale

The People's Bank of China has set the initial total scale of the pilot program, with the upper limit for net inflow of funds from pilot asset management products purchased by overseas investors set at RMB 10 billion. The upper limit of the scale can be adjusted dynamically based on the economic and financial development of the Hainan Free Trade Port, the balance of payments situation, actual market demand, and other factors.

The 'Implementation Rules' were jointly issued by the Hainan Branch of the People's Bank of China, the Hainan Regulatory Bureau of the State Financial Supervision and Administration Commission, the Hainan Regulatory Bureau of the China Securities Regulatory Commission, the Hainan Provincial Local Financial Administration, and the Hainan Branch of the State Administration of Foreign Exchange, and will take effect on August 21, 2025.