Exclusive | Bank of East Asia aims to open branch in Hainan, as China’s free-trade hub seeks overseas investment
- Bank of East Asia says its first branch in Hainan will come up in the provincial capital Haikou after signing an agreement with local authorities on Thursday
- Officials of some 30 banks are in Hainan this week as the province courts foreign investment to build itself into a trade and finance centre
“Some of our clients are very interested in exploring and expanding their operations in Hainan, so we would like to follow and try to serve them,” he said, adding that the province’s favourable policies, which are unique, also attracted the bank.
The Hong Kong-listed lender signed an agreement on Thursday with Hainan authorities to enhance cooperation in areas including wealth management, account settlement and cross-border investment and financing. The branch’s opening is pending internal bank approval.
How will Hainan free-trade port affect the Greater Bay Area and Asean?
“We are very eager to introduce and partner with such high-quality banks [like BEA] which have international outlooks and capabilities,” said Ding Fei, deputy mayor of Haikou, at the signing ceremony on Thursday. The city will continue to improve its business environment, interpretation of policies and help foreign financial institutions with their projects, he added.
Ding’s comments came as executives of some 30 international banks are visiting the province this week to explore business opportunities and meet local authorities on the sidelines of the China International Consumer Products Expo.
“We are very positive about the investment environment in Hainan,” BEA’s Ho said.
However, international banks would like to know the details of the policies’ implementation, such as approval processes and regulations, before making further bets on the region, he added.
The BEA and Hainan framework strengthens financial service capabilities for an increasing number of foreign companies in Hainan, Guan Yi, deputy head of the Local Financial Regulatory Bureau of Hainan Province, said in a written reply to the Post. “We strongly believe that more foreign banks will collaborate with the free-trade port.”
He stressed that the province will continue to facilitate the opening up of its banking sector.
Volkswagen aims to fill China’s EV talent void with new academy in Hainan
As a poster child of China’s opening up, Hainan had previously set up a slew of pilot programmes on cross-border asset management, cross-border cash pooling, as well as easing of capital controls.
“We welcome everybody to come and establish [businesses] and buy houses here,” Yi Xichuan, an official at the Hainan Banking and Insurance Regulatory Bureau, said at a meeting with some international banks in Haikou on Wednesday.
She asked the banks to move their headquarters to the province, set up branches and purchase stakes in local lenders.
