Earlier this year, with the launch of special customs operations, Hainan province in the Chinese mainland entered a new chapter of opening-up—driven not just by freer flows of goods and investment, but by deep financial innovation designed to support them.
Since May 2025, the FTP has approved three centralized cross-border capital operations centers, adding a fourth by late July and reaching six in November. These hubs bring together domestic and overseas foreign-currency funds from multinational groups, routing them through a multi-functional free trade account (also known as an electronic fence or EF account). By enabling centralized payments, foreign exchange, investment, and financing across borders, companies gain the visibility, control, and efficiency they need to manage global capital in real time.
Finance lies at the heart of modern economies, and Hainan’s status as a state-designated pilot zone for comprehensive reform and opening-up has made it an ideal testing ground. Its open market environment, the controlled risks of its island economy, and its mandate to trial ambitious policies are advancing two core objectives: renminbi internationalization and capital account convertibility. Progress in these areas is key to realizing Hainan’s vision as a high-level gateway for the Chinese mainland’s opening-up in the new era.
The impact is already visible in industries such as natural rubber. Hainan Rubber, a world-leading producer operating in 15 countries with annual trade volumes equal to roughly 27% of global consumption, once struggled with scattered funds, inefficient allocation, and exchange-rate exposures. Approved in May 2025 as one of the first companies to operate a centralized cross-border capital center, Hainan Rubber’s general manager, Yang Yu, says the new platform “will reshape our industrial and value chains, strengthen global competitiveness, and cut operational frictions.”
This story is more than a corporate success: it demonstrates how special customs operations, backed by financial tools, can turbocharge the efficiency of capital movement at a global scale. As financial innovation quietly transforms trade, investment, and industry on the island, Hainan is moving firmly toward its role as a core gateway of global commerce.
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Financial innovation will boost Hainan's next leap in opening-up
cgtn.com
