Free trade accounts · Hainan
The Hainan EF account.
How does EFN compare with FTN?
Hainan Free Trade Port has its own free trade account system: the multi-functional free trade account, or EF account. Overseas companies use the EFN version. Here is how it works and how it differs from the Shanghai-origin FTN account.
01 · The basics
What the EF account is
The EF account (多功能自由贸易账户) is a unified RMB and foreign-currency account offered by banks in the Hainan Free Trade Port through a ring-fenced separate accounting unit. The People’s Bank of China Hainan Branch built it on the existing free trade (FT) account system and issued its business rules in April 2024; the accounts went live in May 2024. [1]
The rules follow the same three-part principle as other free trade accounts: the “first line” to the outside world is open, the “second line” into the domestic system is managed as cross-border business, and same-name transfers across the second line are allowed only in limited amounts. [1]
The system has grown with Hainan’s island-wide special customs operations, which began in December 2025. By the end of November 2025, 11 banks in Hainan had opened 729 EF accounts. [2]
02 · Account types
Four prefixes, four kinds of holder
Each EF account number carries a prefix that shows who holds it. [1]
| Prefix | Holder | Key published conditions |
|---|---|---|
| EFE | Entities registered in the Hainan Free Trade Port | Registered in Hainan for at least six months, not on cross-border RMB key-supervision lists, no major violations in the past year; initially limited to good-standing firms with genuine trade or investment needs |
| EFN | Overseas institutions, including Hong Kong, Macao and Taiwan entities | Legally registered outside the mainland for at least one year; meets anti-money-laundering, counter-terrorist-financing and anti-tax-evasion requirements and the bank’s own policy |
| EFF | Overseas individuals | Studying, working or living in Hainan, or qualifying under Hainan’s foreign talent policies |
| EFU | Financial institutions | Overseas financial institutions and qualifying domestic financial institutions |
The one-year registration requirement for EFN may be relaxed for overseas companies of Chinese enterprises investing abroad and for Belt and Road project companies. A recently incorporated Hong Kong company should not assume it meets the EFN conditions. [1]
03 · EFN vs FTN
EFN and FTN side by side
Both are free trade accounts for overseas companies, and both combine RMB and foreign currency in one framework. The differences are in where they are offered, who qualifies and how the rules are written. For how FTN compares with the nationwide NRA account, see our NRA and FTN comparison.
| EFN account (Hainan) | FTN account | |
|---|---|---|
| System | Hainan Free Trade Port multi-functional free trade account; rules issued by the PBOC Hainan Branch in April 2024 | Free trade (FT) account system created for the Shanghai Free Trade Zone in 2014 |
| Where it is opened | Banks in the Hainan Free Trade Port with an EF separate accounting unit | Banks with a qualified FT separate accounting unit; launched in Shanghai and since replicated in other free trade zones |
| Published registration age | At least one year since overseas registration, with possible relaxation for certain outbound Chinese and Belt and Road companies | Set by each bank’s own admission policy |
| Currencies | One account for RMB and foreign currency; banks square FX positions at offshore market prices | One account framework for RMB and foreign currency under the FT rules |
| “First line” (outside) | Transfers with overseas accounts, OSA accounts, NRA accounts and other EF accounts are permitted on payment instructions | Flows to and from overseas accounts are the part the system is designed to keep open |
| “Second line” (domestic) | Transfers with domestic resident RMB accounts are treated as cross-border transactions and must be in RMB | Limited penetration and strict management; handled as cross-border business |
| Due diligence | Know-your-customer, know-your-business and due diligence principles; enhanced checks for high-risk jurisdictions | Bank due diligence under China’s customer due diligence rules |
04 · Choosing
Which one fits your company?
- Consider EFN if your counterparties, goods flows or investment plans are connected with the Hainan Free Trade Port, and your overseas company has been registered for at least a year.
- Consider FTN if you work with counterparties in Shanghai or another free trade zone, or prefer a bank whose FT unit you already use.
- Consider an NRA account if you mainly need straightforward trade settlement with banks across mainland China.
Whichever framework you choose, the bank will want to understand who owns the company, what it trades and why the account is needed. Switching account type does not resolve missing or unverifiable business information. Our document checklist and application concerns guide apply to EFN applications as well.
Sources and scope
This guide summarises published rules. Banks apply their own policies on top of them, and the PBOC Hainan Branch may adjust macro-prudential parameters.
- Business Management Measures for Multi-functional Free Trade Accounts in the Hainan Free Trade Port — PBOC Hainan Branch, April 2024, hosted by SAFE Hainan (Chinese).
- Hainan launches multi-functional free trade accounts to support customs operations — People’s Bank of China, December 2025 (Chinese).
General information only. Eligibility, account functions and approval depend on the applicable rules and the bank’s assessment of your specific circumstances.