FINANCE

Caixin Explains: What Hainan’s EF Accounts Mean for Cross-Border Capital Flows in China

Published: Dec. 18, 2025 7:10 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Photo: Xinhua

China has put into operation a new mechanism for managing cross-border capital flows in Hainan, centered on a free trade account known as the electronic fence (EF).

For multinational companies and financial institutions, the EF account system provides a practical way to move funds across borders under account-level rules, offering an alternative to quota, approval and registration requirements under China’s cross-border capital management framework.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

China launched EF accounts in Hainan in May 2024, allowing simplified cross-border fund transfers under the Free Trade Port framework.
By October, 658 EF accounts were opened across 11 banks, with flows totaling 268.9 billion yuan ($38.2 billion), involving 80 countries and regions.
EF accounts offer fewer restrictions for overseas transfers but have usage limits, prohibiting certain investments and non-business-related activities.

AI generated, for reference only