HAIKOU / China /, November 25. / TASS /. Authorities in southern China’s Hainan Province have released the 14th five-year plan (2021-2025) to develop the region’s financial sector. The document was released by the provincial government office, Hainan Daily newspaper reported.
According to the publication, the added value of the financial sector is expected to exceed 100 billion yuan (about 15.6 billion dollars) by the end of the five-year plan. The share of this sector in the province’s PRB 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 specifies that the development of the financial sector must meet the requirements of the free port policy in Hainan province, and its priority will be to serve the real economy. The regional government is committed to continuing to introduce reforms in 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 and attract strategic investors. The province intends to create a tiered capital market, as well as mechanisms to link the region’s financial sector to offshore markets in China and foreign countries as well as foreign exchange markets.
The published document indicates that Hainan will become a pilot area to test 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 climate change response projects.
The financing of aerospace and aviation projects, water transport and consumer loans are among the priorities. Another priority is to serve the real economy, especially in tourism and other sectors. In addition, regulators should develop a policy to provide financial services to high-tech companies, companies resident in technology parks, clusters and experimental areas located in Hainan.