China Securities Co., Ltd.: Review of core policies and market impacts of the closure of Hainan Free Trade Port.

China Securities Co., Ltd. released a research report stating that the operation of the Hainan Free Trade Port customs seal marks a new stage in its strategic positioning as a comprehensive deepening reform and opening-up pilot zone. Through the regulatory framework of "release at the front line, control at the second line, and freedom on the island", Hainan aims to create a new highland of institutional opening-up, aligning with international high-standard economic and trade rules. The customs seal policy not only reduces the import costs for enterprises and enhances trade facilitation, but also attracts a large amount of domestic and foreign investment through measures such as tax incentives and financial openness. In particular, the "zero tariff" policy, the processing value-added duty-free policy, and the establishment of a multi-functional free trade account provide unprecedented development opportunities for enterprises. The main points of China Securities Co., Ltd. are as follows: In terms of taxation, the Hainan Free Trade Port has implemented policies such as the "zero tariff" policy and the processing value-added duty-free policy, significantly reducing the import costs of raw materials and customs clearance for enterprises. At the same time, preferential measures for corporate income tax and personal income tax further increase the retention of profits for enterprises and attractiveness for talents. In terms of financial openness, the establishment of a multi-functional free trade account facilitates cross-border capital flow for enterprises, reducing the cost of fund operation. In terms of industrial support policies, the Hainan Free Trade Port provides key support to core industries such as tourism, modern services, and high-tech industries. Through special support policies and tax leverage, technological breakthroughs and industrialization are promoted. In addition, innovative development formats such as bonded processing, re-export trade, and cross-border e-commerce have also developed, creating an efficient and convenient domestic open environment. In terms of market impact, the customs seal policy of the Hainan Free Trade Port provides unprecedented development opportunities for enterprises, reducing costs and enhancing international competitiveness. At the same time, policy dividends have attracted a large amount of domestic and foreign investment, driving rapid growth in regional economy. However, policy implementation also comes with an increase in compliance requirements, and enterprises need to establish more comprehensive compliance systems to ensure that business operations comply with policy requirements. Looking to the future, the Hainan Free Trade Port will continue to deepen reform and opening-up, optimize the business environment, and provide more opportunities for enterprises and investors. With the further implementation of the customs seal policy, Hainan is expected to become an important gateway leading China's new era of opening up to the outside world.