Why does Hainan Free Trade Port allow 70 listed companies to "swer south"? Revealing the five magics of the hot land of investment!

Recently, Hainan Island staged a unique "enterprise migration" - more than 70 listed companies from Guangdong gathered in Chengmai and Wenchang. They were not here for vacation, but took "professional scorecards" to inspect the investment opportunities in Hainan Free Trade Port. These corporate tycoons have experienced many battles, covering many industries such as real estate, technology, medicine, cultural media, etc., and are all ready to smell the smell of gold mines. As the Hainan Free Trade Port sealing operation enters the sprint stage (it is expected to be fully implemented in 2025), this hot land is becoming a "new trend" for enterprises to compete for. So, what magic does Hainan have to attract these industrial giants to go south? Today, let’s find out the five major attractions behind it in plain language!

1. Policy dividend: a real money-saving gift package

The core charm of Hainan Free Trade Port lies first in a series of "super discounts" given by the government. Simply put, if a company invests here, it can save a lot of money! for example:

- Zero tariffs and low tax rates: all tariffs on imported goods are exempted, with the maximum corporate income tax of only 15% (much lower than the 25% in the mainland), and the personal income tax is also capped at 15%. This is equivalent to a company paying less taxes of millions or even hundreds of millions of yuan each year, and its profits are directly "inflated". An executive of a technology company in Guangdong calculated the account: "The cost of setting up a factory in Hainan has dropped by 30%. Who is not tempted?"

- Simplified investment process: The government implements "very simple approval". It only takes a few days for enterprise registration and project implementation, unlike the mainland. The policy also supports the free entry and exit of foreign capital, and the flow of funds is more flexible, which is suitable for listed companies to quickly deploy overseas markets.

This wave of dividends is not empty talk. In 2023, Hainan added more than 100,000 new enterprises, a year-on-year increase of 40%, which shows the policy's "money-absorbing power". When corporate tycoons visited, they focused on Chengmai Industrial Park and Wenchang Aerospace City, because these local policies were implemented the fastest and could be called "a treasure land for saving money."

2. Geographical advantages: China's "South Gate", direct access to the global market

Hainan is not an isolated island, but a springboard for the world! It is backed by mainland China and facing Southeast Asia, with a unique location:

- International hub status: Hainan has hubs such as Yangpu Port and Sanya Airport, which are convenient and efficient in importing and exporting goods. Under the policy of the free trade port, the products produced here by enterprises are almost "zero obstacles" to export to ASEAN countries. A representative from Guangdong pharmaceutical company said: "Delivery from Hainan to Singapore is two days faster than from Guangdong, and the logistics cost is 30%.

- Tourism consumption bridgehead: More than 80 million tourists flock to Hainan every year, and the duty-free shopping quota is as high as 100,000 yuan per person. Enterprises can directly connect with a large consumer group, such as cultural media companies that can develop duty-free live streaming and sell goods, while real estate developers target high-end vacation projects.

The inspection team saw the perfect combination of "geography industry" in the Aerospace City in Wenchang: a satellite launch base is being built here, and technology companies can take the opportunity to enter the space economy and seize the initiative of the "Belt and Road".

3. Industrial opportunities: There are many trends, from "manufacturing" to "intelligent manufacturing"

Hainan is not just selling coconuts, it is transforming into a high-tech and innovation center! The Free Trade Port focuses on the development of tourism, modern service industries and high-tech industries, and enterprises can find the "blue ocean" here:

- Technological and pharmaceutical outbreak: The government spends a lot of money to support R&D. For example, the Boao Lecheng Medical Special Zone allows import of new foreign drugs, and pharmaceutical companies can quickly experiment with innovative products. Technology companies benefit from the free cross-border flow of data and can develop cutting-edge technologies such as artificial intelligence and blockchain. A Shenzhen technology tycoon revealed: "Hainan's open environment has doubled the speed of our chip research and development."

- New Green Economy and Cultural Opportunities: Hainan is promoting environmental protection industries, such as clean energy projects; cultural media companies can use the tax-free policy to build international film and television bases. During the inspection, Chengmai's ecological park shines for real estate developers - "low-carbon buildings" are encouraged here, and the market size may exceed one trillion in the next ten years.

Simply put, Hainan has been upgraded from a "traditional tourism island" to a "innovation experimental field", and enterprises can "snatch" the new track here to avoid the red ocean of competition in the mainland.

4. Infrastructure upgrade: Hardware "hard core" has a promising future

Investment depends not only on policies, but also on "hard conditions". Hainan is smashing infrastructure to build a "safety" for enterprises:

- Major upgrades in transportation and logistics: projects such as the island-round high-speed railway and Haikou Airport expansion are being accelerated, and the goods are "departing day and night". After the customs clearance operation, the entire island will become a "special customs supervision zone" and the customs clearance efficiency will be increased by 50%.

- Smart city supporting facilities: full coverage of 5G network, data centers bloom everywhere, and corporate offices are "seamlessly connected". The inspection team saw in Wenchang that the supporting laboratories and factories of the Aerospace City had begun to take shape, and the technology company could start construction by "moving in with a bag".

These infrastructures are not pie. Hainan plans to invest more than 100 billion yuan in 2024, and the operating costs and efficiency of enterprises after they move in are lower. No wonder real estate giants have already made plans in Chengmai.

5. Market potential: the "consumption engine" of 1.4 billion people

Finally, behind Hainan is China's huge domestic demand market! The policy of the free trade port attracts global brands to settle in, and enterprises can share the cake with "close to the water":

- Duty-free shopping paradise: Tourists' consumption power is strong, Hainan's duty-free sales exceeded 80 billion yuan in 2023. Cultural media companies can plan cross-border IP activities, while pharmaceutical companies introduce "life-saving drugs" through Lecheng Special Zone to earn high premiums.

- Demographic dividend continues: Hainan's permanent population exceeds 10 million, and the trend of youth is obvious, and consumption upgrade demand is strong. An executive of a Guangdong cultural company laughed and said, "There are many young people here, and you can set up a short video base and you won't have to worry about traffic!"

The air vent has arrived, are you ready?

In short, the magic of Hainan Free Trade Port lies in the quintet of "policy geography industry infrastructure market". It is not only a "money-saving paradise", but also a springboard for corporate leaps. As the closure operation approaches, the southward inspection of 70 listed companies is just the beginning - it is expected that Hainan will attract more than one trillion yuan in investment in the next three years. Ordinary people should not just be spectators: want to start a business? The threshold for registering a company in Hainan is low; want to find a job? High-paying jobs are skyrocketing; want to shop? Duty-free items are cheaper! This hot land is open to its arms, and opportunities are not waiting for anyone. Follow Hainan news, maybe the next "gold digger" is you!