Support for the Legal Cross-Border Purchase of Certain Overseas Financial Services

Hainan Free Trade Port · Policy Explainer

Category: Hainan FTP · Financial Policies · Institutional Opening-up

Policy Source: State Council Document No. 9 (2023); Joint Opinion by PBoC, MOFCOM, NFRA, CSRC, SAFE (2025)

Region: Applies to Hainan FTP and other designated pilot zones such as Shanghai, Guangdong, Tianjin, Fujian, Beijing FTZs, and cooperation platforms like Hengqin, Qianhai, and Nansha.

Applies to: Hainan-registered enterprises; individuals living/working in Hainan FTP

Last Updated: 2025

Policy Theme: Cross-border financial services; WTO Mode 1 opening; insurance settlement facilitation

Summary

Enterprises registered in the Hainan Free Trade Port (FTP) and individuals living or working in the FTP are permitted to legally purchase specific types of overseas financial services. These services fall under areas that China has already opened under its WTO commitments. In addition, cross-border insurance-related payments such as renewals, claims, and surrender proceeds can be settled lawfully as long as the transactions are real and compliant.

What It Does

Allows Hainan-based enterprises and residents to legally access certain overseas banking and insurance services without needing overseas branches.

Enables cross-border settlement of premium payments, claims, and refunds for overseas insurance policies.

Aligns Hainan’s opening-up with international high-standard trade rules, especially WTO Mode 1 (cross-border supply of services).

Enhances financial service options for industries with international exposure such as logistics, aviation, shipping, asset management, and tourism.

Who Can Use It

The policy applies to:

Enterprises registered in the Hainan Free Trade Port

Individuals who work or permanently reside in Hainan FTP

Both groups can legally purchase approved overseas financial services as long as transactions are genuine, lawful, and have proper documentation.

Key Clauses

1. Overseas services allowed under WTO commitments

Banking services:

Cross-border delivery and transfer of financial information

Financial data processing

Financial software and related services

Consulting, advisory, and other auxiliary services

Insurance services:

Reinsurance

International maritime, aviation, and transport insurance

Large commercial risk brokerage

Maritime/aviation/transport insurance brokerage

Reinsurance brokerage

These are the only categories currently approved for legal cross-border purchase by Hainan FTP entities and residents.

2. Cross-border insurance payment facilitation

Enterprises and individuals may legally process:

Renewal of overseas policy premiums

Cross-border claim payments

Refunds and policy surrenders

All fall under the current-account category and can be settled through domestic banks once verified as legitimate.

3. Alignment with regional pilots

Although designed for all eligible pilot zones, this policy echoes developments in other regions (e.g., Greater Bay Area), showing a national direction toward more flexible cross-border investment and insurance channels.

Practical Impact

For businesses

International logistics, aviation, shipping, and tourism operators can legally obtain international insurance coverage required for global operations.

Companies can outsource specific financial information processing and software services to overseas providers.

Reduces operational risk by allowing access to global reinsurance and specialty insurance markets.

For individuals

Residents who legally hold overseas insurance policies can renew, claim, and cancel them without regulatory uncertainty.

Greater access to professional overseas advisory and financial information services.

For the Hainan FTP ecosystem

Positions Hainan as a more internationally integrated hub.

Supports the development of aviation, maritime, trade, and advanced services sectors.

Encourages further alignment with global economic and financial standards.

Lead Department

Primary responsible authorities:

People’s Bank of China (PBoC)

Ministry of Commerce (MOFCOM)

National Financial Regulatory Administration (NFRA)

China Securities Regulatory Commission (CSRC)

State Administration of Foreign Exchange (SAFE)

These departments jointly oversee interpretation, implementation, and cross-border settlement compliance.

FAQ

1. Can Hainan residents use this to purchase any overseas financial service?
No. Only services explicitly opened under China’s WTO commitments are permitted. This includes specific banking and insurance services, not general investment products.

2. Can companies use this to buy overseas investment management services?
Not yet. Only certain information-based, data-processing, software, and insurance services are included. Investment management services fall under different regulatory categories.

3. Are cross-border insurance settlements automatic?
Banks must verify the authenticity and compliance of transactions. Once verified, settlements for renewals, claims, and refunds can proceed under current-account rules.

4. Does this allow individuals to buy overseas stocks or funds?
No. This policy is strictly about specific financial “services” — not investment products.

5. Does the company need an overseas office to use these services?
No. Cross-border “delivery” (Mode 1) means the service provider remains overseas while serving clients in Hainan FTP.