New measures introduced to further open up Hainan Island

Based on the policies introduced in mid-October by the State Council to support development of the Hainan Pilot Free Trade Zone, Hainan unveiled on Oct 29 a set of 30 measures which has been specially granted by the State to Hainan to seek greater opening up of the island.

Below are part of the measures for sectors in which foreign investment were not permitted before but now have been modified to allow foreign investment.

1. Allows eligible foreign-funded financial institutions to set up foreign banks;

2. Allows eligible financial institutions of private capital and foreign capital to jointly set up Sino-foreign joint venture banks;

3. Allows eligible Sino-foreign joint venture travel services registered in Hainan pilot FTZ to engage in overseas travel service in all parts of the world other than Taiwan;

4. Allows foreign funded enterprises to engage in the production and marketing of games and entertainment equipment, which may be sold in the domestic market provided that the contents thereof pass the examination of the department in charge of culture affairs;

5. Allows the establishment of wholly foreign-owned amusement venues that provide services in Hainan pilot FTZ;

6. Allows foreigners to invest in domestic internet VPN business (to hold no more than 50 percent of the shares);

7. Allows foreign investors to engage in sales agencies of air transport as sole proprietorships;

8. Allows the establishment of foreign-funded credit investigation companies;

9. Allows the establishment of Sino-foreign joint venture talent intermediary agencies, with the foreign party holding no more than 70 percent of the shares;

10. Allows the establishment of Sino-foreign cooperative education and training institutions.

Methods are being drafted for implementation of the new measures, according to the China (Hainan) Free Trade Port Working Committee Office and the Department of Commerce of Hainan Province.