Finance is an important driving force for the construction of the Hainan Free Trade Port. The central branch of the People's Bank of China in Haikou and the branch of the Hainan Provincial Foreign Exchange Bureau have fulfilled the requirements of the general plan for the construction of the Hainan Free Trade Port, and actively promoted financial reform, openness and innovation. Free Trade Port and built a modern financial system compatible with the Free Trade Port construction and made significant progress. Financial statistics released by the central branch of the People's Bank of China in Haikou show that social finance in Hainan will increase by 97 billion yuan in 2020, an increase of 1.6 billion yuan over the same period last year.
In terms of the scale of social finance, important support for its growth comes from financial institution lending and bond financing. “In 2020, provincial local government bonds will grow by 39.9 billion yuan, which is 41.1% of the provincial social finance scale, effectively contributing to an increase in the annual social finance scale,” said He Yangming, director of the study. As for deposits and loans, at the end of 2020, the balances on loans in national and foreign currency in the province amounted to 998.2 billion yuan, up 46.1 billion yuan from the beginning of the year, up 4.8% on compared to the same period last year, 1.3 percentage points higher than the province's 2020 economic growth. The balance of deposits in national and foreign currency amounted to 1,031.2 billion yuan, an increase of 5.9% over the same period last year. The People's Bank of China's central branch in Haikou has been actively channeling lending to the provincial financial industry, setting interest rates to closely monitor policy direction and pace, and strongly support epidemic prevention and control and real economic recovery. Lending to small and micro businesses, as well as agriculture-related sectors, grew rapidly.
In 2020, the province's loan balance for small and micro enterprises with a total credit limit of less than RMB 10 million increased by 36.7% over the same period last year. As of the end of 2020, the balance of the poverty alleviation financial target loan was 31.4 billion yuan, an increase of 37.8% over the same period last year; the balance of agricultural loans amounted to 167.12 billion yuan, up 4.2% over the previous year. Financial support for the normalization of epidemic prevention and control measures and the resumption of work and production. About 2,000 enterprises (including individual industrial and commercial households and rural households) in the province received 2.2 billion yuan in support of new inclusive re-loan lines; local corporate banks 4.99 billion yuan, an increase of 6.5 times over the same period last year; 310 key enterprises, which sent banks to government departments, provided loans worth 7.22 billion yuan. the cost of financing market entities has significantly decreased.
In 2020, the provincial financial institutions' weighted average interest rate on general loans denominated in yuan was 5.61%, down 41 basis points year on year, of which the province's weighted average interest rate for loans to small and micro enterprises was 5.38. %, which is 56 basis points less than a year earlier. The provincial banking financial institutions have lowered fees and brought in profits of more than 700 million yuan. The scale of income and expenses related to foreign receipts and payments, settlement and sale of foreign exchange, and offshore resale transactions grew rapidly. In 2020, the province's total revenues and expenditures related to foreign assets were US $ 18.79 billion, an increase of 23.6% over the same period last year; the province's banking settlements and sales totaled $ 11.7 billion, up 16.7% year-on-year.
In 2020, the volume of income and expenses from offshore resale business in the province will increase significantly, increasing by 8.6 and 8.4 times compared to the same period last year, respectively. According to Shi Haifeng, deputy director of the monetary department of the Central Branch of the People's Bank of China in Haikou, the Hainan Free Trade Account (FT account) continues to improve its functions and the scale of its business has expanded significantly. Currently, 10 commercial banks provide financial services through free trade accounts. In 2020, 7,235 main accounts and 21,648 additional accounts were opened; cash receipts and payments amounted to 31.33 billion yuan, an increase of 130% on average.
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