Hainan-Hong Kong ties could chart a new course for opening-up

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Hainan-Hong Kong ties could chart a new course for opening-up

Guo Yi, managing director and partner of Boston Consulting Group, said that deeper economic and financial ties between Hainan and Hong Kong will chart a new course for China's high-standard opening-up by giving full play to each of their comparative advantages.

Hong Kong's success comes from its sophisticated financial market, free capital flow and independent judicial system. While Hainan is an island province in the South China Sea close to the Vietnam border, it is often billed as China's equivalent to Hawaii and is also the nation's strategic gateway to Southeast Asia.

Hainan doesn't need to replace Hong Kong, because it is more of a financial center and entrepot. Guo said that collaboration will deliver a win-win situation for both the trade port and the market, because Hainan will be a booming duty-free market and intimate links with the Southeast Asian market.

Amid growing calls for closer regional cooperation during the annual economic event held in China's southernmost province, the development of the Hainan free-trade port was a default icebreaker for conversations between leaders of governments and businesses from across the globe.

As a major opening-up measure, China aims to turn Hainan Island into a globally influential and high-level free-trade port by the middle of the century. The tropical province hopes to have a round-island independent customs operation by the end of 2025.

Hong Kong's financial prowess can complement Hainan in a significant way because the province is turning out to be a bridgehead for both Chinese enterprises to go global and overseas companies to enter China, a building block of which is the ability to meet enormous financial needs, Guo said.

Hong Kong s professional services will be allowed easier access to the tropical island as part of a string of policy moves to enhance Hainan's attractiveness to the world.

In February, the measures include encouraging Hong Kong financial institutions, such as banks and insurance companies, to set up branches or offices in the province.

A total of 50 Hong Kong professional qualifications for physicians, social workers, tour guides and structural engineers, involving more than 10 industries, will also be recognized in the Hainan free-trade port.

It is believed that more upcoming measures will spearhead the flow of capital, people and information between the two places, and will prop up the internationalization of the market on multiple fronts, Guo said.