Hainan Calls for Regional Enterprises to Seek Financing Via Overseas IPO’s, Sale of Government Bonds to Global Investors

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The latest development plan issued by the Chinese island province of Hainan encourages regional enterprises to pursue financing via listing on domestic and overseas bourses, while also flagging the issuance of local government bonds to global investors.

The Hainan province government issued the “Hainan Free Trade Port New Investment Policy Three Year Action Plan (2021 – 2023)” (海南自由贸易港投资新政三年行动方案(2021-2023年)) on 17 May.

The Plan calls for “greatly reducing market entry barriers,” as well as the “creation of an open, transparent and predictable investment environment” on the island.

It also outlines plans by the Hainan province government to “encourage and guide enterprises to obtain financing via domestic and overseas listing,” and the “issuance of local government bonds and enterprise bonds to qualified offshore investors when appropriate.”

The release of the Action Plan arrives following the unveiling of the “Hainan Free Trade Port Development Master Plan” (海南自由贸易港建设总体方案) in June 2020.

The Hainan province government has set the target of 10% per annum growth in social investment during the period from 2021 to 2023, alongside annual growth in infrastructure investment of around 3%.

“At present the construction of the Hainan Free Trade Port is in an incipient phase and a key time period, but still faces problems including irrational investment structure, low investment efficiency and the urgent need for industries to upgrade,” said the Three Year Action Plan.

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