Two-way trade settlement services to boost FTZ growth

Two-way trade settlement services started on Tuesday in Hainan following the launch of a free trade (FT) account in the China (Hainan) Pilot Free Trade Zone in southern China's Hainan province.

"The first fund transfer settlement was made for the import of 300 metric tons of fluff pulp from International Paper and for the export of a batch of clothing materials under the free trade account on Tuesday. The new system was very fast and convenient," said Zheng Xiaobo, general manager of Hainan ITG Co Ltd, a joint venture between Hainan Provincial Development Holdings Corp Ltd and Xiamen ITG Group Corp Ltd.

The move is part of the efforts to help develop a sound business environment in the country's largest free trade zone established in April 2018. The Hainan Free Trade Account is a convertible accounting system with renminbi as its base currency, using unified accounting rules and taking into account various types of risk management between the renminbi and foreign currencies, according to the Haikou branch of the People's Bank of China, the nation's central bank.