Offshore trading accounts to hundreds

The “Free Trade Account Policy and Application Promotion Conference” was held in Haikou on the 14th, and 400 foreign-invested enterprises were present.

Haixinkou Haikou on December 15th (Wang Wang Qiang) “Free Trade Account Policy and Application Promotion Conference” was held in Haikou on the 14th. Hainan Provincial Department of Commerce and Bank of China Hainan Branch attended the 400 foreign-invested enterprises. Promote free trade account policies and applications.

The Hainan Free Trade Account System will be officially launched on January 1, 2019, and will become an important financial infrastructure for the Hainan Free Trade Zone. The promotion will help foreign-invested enterprises in Hainan Province to better understand the policies and applications of free trade accounts, and help enterprises to make good use of the free trade zone policy.

At the promotion meeting, two financial experts from the Bank of China Shanghai Branch made relevant introductions – Senior Manager Zhang Genghao explained the “free trade account policy”, and senior manager Zhu Huilian did the “free trade account application case” analysis.

The free trade account (referred to as FT account) is a unified local and foreign currency account opened by financial institutions in accordance with the needs of customers in the self-trade accounting unit, independent of the existing traditional account system, and the service targets include domestic and foreign enterprises and individuals. Various entities such as financial institutions are an important institutional arrangement for exploring the convenience of investment and financing exchanges, expanding the opening of financial markets and preventing financial risks.

Zhu Huilian introduced that the FT account can realize the effective management of the settlement account, and for the enterprise, it can reduce the opening of other accounts. Due to the convenience of the FT account settlement and sale, enterprises can enjoy the offshore exchange rate under the FT. Under normal circumstances, there is a price difference between the offshore exchange rate and the onshore exchange rate. After the enterprise opens the FT account, the domestic or overseas price can be freely selected at the time of settlement and sale. In addition, the FT account function is more comprehensive, it will be more convenient to transfer the enterprise overseas through the account, and it is also convenient to realize enterprise asset management and introduce overseas financing.

Cheng Hao, deputy director of the Hainan Provincial Department of Commerce, said that the free trade account is a major measure to further promote the construction of the Hainan Free Trade Zone. At the same time, the free trade account business is also one of the financial innovations with high gold content, to further deepen the financial reform of the free trade zone. The realization of trade and investment facilitation has an inter-generational significance. At present, the construction of the Hainan Free Trade Zone has been fully launched, and a series of reform and innovation measures including the FT account will be launched one after another. It is hoped that enterprises and domestic and foreign investors will invest in Hainan. The Hainan Provincial Department of Commerce will provide enterprises with efficient services in a variety of forms and to meet the needs.

The head of Hainan Bank of China said that the Bank of China has extensive experience in cross-border finance, trade finance, overseas offshore finance, etc., and has several major business starts in the domestic free trade zone. Hainan Bank of China is working hard to promote the construction of FT accounts. The promotion meeting is to fully prepare for the Hainan Free Trade Account System, allowing more enterprises, institutions, and individuals to share the financial innovation dividend through the FT account, and also attract more domestic and foreign high-quality enterprises and professionals through the FT account. Talents and tourists come to Hainan to gather the strength of all parties to accelerate the construction of the Hainan Free Trade Zone.

It is reported that Bank of China has achieved a number of major business launches in the construction of the domestic “1+3+7” free trade zone and is also the main force in the construction of the Shanghai FT account system. 

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