CITIC Construction Investment: Hainan is expected to become a hot spot for industry relocation.

China CITIC Securities research report stated that the closing policy in Hainan is an important measure of China's new round of reform and opening up, with a level of institutional design and policy coverage that has never been seen before. Hainan, characterized by "comprehensive institutional breakthroughs," has constructed a policy system for a free trade port through "zero tariffs, low tax rates, and simple tax system," significantly reducing the operating costs of enterprises. In the financial field, Hainan has implemented a regulatory model of "loosening control in the first line and tightening in the second line," promoting the liberalization and facilitation of cross-border capital flows, and the establishment of EF account system has provided infrastructure upgrades for financial opening. With the policy dividend, Hainan is expected to become a hot spot for industrial relocation, high-end manufacturing, aviation logistics, digital economy, and other industries may gather in Hainan, forming new economic growth points. At the same time, through measures such as relaxing visa-free policies and optimizing the tourism environment, Hainan effectively stimulates overseas consumption and enhances its position as an international tourism consumption center. In terms of population migration, the relaxation of Hainan's household registration policy and talent introduction plan significantly promote the optimization of population structure and urbanization process. The influx of high-quality talents provides strong support for the construction of Hainan's free trade port. However, the closing policy in Hainan also faces risks and challenges such as the deterioration of international economic and trade relations and the rise of global trade protectionism, restricting population migration in Hainan. Overall, the closing policy in Hainan will significantly enhance Hainan's position in the global value chain, injecting new impetus into China's high-quality economic development. In the future, Hainan needs to continue to deepen policy implementation, strengthen risk prevention and control, and continuously achieve new results in the construction of the free trade port.