A bank teller at work in Qionghai city, Hainan province. [Photo/VCG]

The Electronic Fence (EF) Account has emerged as a powerful financial tool for enterprises engaged in overseas operations in Hainan Free Trade Port, facilitating cross-border financial transactions.

Since its launch in May, 2024, the EF account services have garnered significant interest from both domestic and international businesses, attracting a diverse range of companies across various industries and regions. To date, 10 pilot banks in Hainan province have opened over 330 EF accounts, with a total transaction value exceeding 120 billion yuan ($16.74 billion) across the province.

Over the past year, Hainan has actively promoted EF account benefits to enterprises through policy briefings, online sessions, and in-person meetings, helping businesses make better use of EF account policy incentives, and offering top-notch financial services to sectors such as bulk commodities and gaming, according to Fu Junxian, deputy general manager of the International Business Department at Bank of Communications Hainan Branch.

"We have supported multiple eligible domestic and foreign enterprises in establishing EF accounts, providing end-to-end cross-border financial services for deposits, remittances, and financing. The cumulative transaction value has exceeded 5 billion yuan," said Lyu Lei, product manager of the International Finance Department at Agricultural Bank of China Hainan Branch.

Over the past year, businesses with EF accounts have praised the convenient and efficient experience, highlighting the savings in time and effort.

"In the past year, Bank of Communications Hainan Branch has provided us with a wide range of EF application scenarios and professional services. So far, we have realized a business value of 1.1 billion yuan through the EF account," said the financing manager of Shide Group Luo Yiqiao, adding that the company has a large demand for cross-border trade and investment and high requirements for the timeliness of cross-border fund transfers.

She said the EF account has significantly streamlined operations for enterprises, accelerating fund transfers and notably cutting down on operating costs. Moving forward, the company plans to expand the scope and diversity of EF account services in alignment with policy developments.

Currently, Hainan is enhancing the account-opening procedures and management in response to the needs and expectations of enterprises within the free trade port, supporting more qualified high-quality enterprises in opening EF accounts. Additionally, the region is intensifying its effort in service and product innovation. With the ongoing advances in fintech and deeper integration of global financial markets, the EF account is poised to assume an increasingly pivotal role.


Source: Official WeChat account of Do Business in Hainan