Sanya, in Hainan Province, could be transformed through a new partnership, between Chinese corporate monolith Ping An and the local municipal government, that says it aims to develop a new "Smart City". Photo: iStock

Hainan, an island province of China and the nation’s southernmost point, has been given full support to build up both the Hainan trade pilot zone and free trade port by the central government, to help open up and improve the business environment, reported.

The State Council raised two goals in its latest guideline in support of Hainan’s comprehensive deepening of reform.

First, it is expected that significant progress will be achieved in the construction of the Hainan trade pilot zone by 2020.

Second, by 2025, the free trade port system will be initially established, thus dramatically raising the potential of Hainan’s business sector.

The guideline also points out that Hainan must resolutely prevent speculation in the real estate market, as the property sector is one of the pillar industries of the province.

In order to prevent the increase of housing prices driven by the inflow of capital and population following the new policy, the Hainan government has launched restrictive regulations.

It was announced that families without local residency in Hainan can only purchase one home, and the down payment must be no less than 70%.

Buyers purchasing a house in the restricted purchase area must also provide more than five years of payment records, have signed up for social security and pay individual taxes.  

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