In August 2025, China's Free Trade (FT) account system expanded with significant progress in Tianjin and Hainan, two pilot regions pushing the frontier of cross-border financial services.

On August 11, CITIC Bank's Tianjin branch officially launched its FT account platform, bringing the total number of FT pilot banks in Tianjin to six. Since China Merchants Bank first introduced FT accounts locally in late 2019, the system has grown steadily with Bank of China, Shanghai Pudong Development Bank, ICBC, and Bank of Communications joining in succession throughout 2025. This growth reflects Tianjin's active development of its cross-border financial infrastructure.

Each institution brings distinct strengths. China Merchants Bank offers unified RMB and foreign currency accounts that streamline foreign exchange and financing, enhancing corporate competitiveness and improving the local business climate. Bank of China applies its “two markets, two prices” model, giving clients the flexibility to choose between onshore and offshore exchange rates, effectively reducing financing costs while supporting the real economy through preferential loans sourced domestically and offshore. Shanghai Pudong Development Bank, recognized for its innovation, leverages group-wide resources to provide multi-dimensional cross-border services, fostering regional integration across the Beijing-Tianjin-Hebei area. ICBC, with its vast global presence, connects domestic and international markets across onshore, offshore, and cross-border scenarios, supporting Tianjin's role as a northern FT financial hub aligned with broader regional strategies. Bank of Communications specializes in leasing and cross-border e-commerce, combining FT and traditional accounts to simplify trade finance operations. CITIC Bank, with over two decades of international business experience, aims to deepen FT account services to support Tianjin's sustainable economic growth.

FT accounts now operate in five major Free Trade Zones—Tianjin, Shanghai, Guangdong, Shenzhen, and Hainan—with ICBC uniquely providing full coverage across all zones. The People's Bank of China Tianjin branch emphasizes the importance of balancing financial innovation with prudent oversight, advancing Tianjin as a northern FT financial innovation center to sustain ongoing economic development.

Hainan is advancing the Enhanced Free Trade (EF) account system—an upgraded iteration of FT accounts—supported by the province's 2025–2027 action plan aimed at expanding pilot coverage and improving cross-border capital flow efficiency.

Launched in May 2024, EF accounts offer near-instant cross-border transfers—often completed within five minutes—integrated RMB and foreign currency settlements tailored to regional industry needs, and flexible partial foreign exchange conversions at offshore rates with zero fees. Leveraging data-driven negative-list regulatory oversight, EF accounts provide greater operational flexibility compared to FT accounts, which feature stricter transaction limits and onshore FX rates with fees.

By July 2025, ten banks, including Bank of China, China Construction Bank, Agricultural Bank of China, CITIC Bank, ICBC, Bank of Communications, Shanghai Pudong Development Bank, China Merchants Bank, Everbright Bank, and Industrial Bank, had opened 483 EF accounts, collectively managing funds equivalent to RMB 172.6 billion. These accounts enable market participants to handle capital settlement, currency exchange, credit facilities, cross-border investments, and asset preservation.

Bank of China has played a leading role in issuing blue bonds for Hainan's government, using EF accounts to settle bond proceeds—a clear demonstration of EF accounts' integration in capital market transactions. Meanwhile, four cross-border centralized fund operation centers in Hainan, including Yuancheng Technology (Hainan) Co., Ltd., illustrate EF accounts' capacity to enhance corporate capital management, reduce debt costs, and optimize offshore trade operations.

The People's Bank of China Hainan branch continues to support EF accounts as a vital tool to foster real economy growth and facilitate efficient cross-border capital flows within the free trade port.