China to launch yuan settlement trial, boost tourism in Hainan

China will expand a trial program, allowing the cross-border trade settlement to use the yuan, in the Southern island province of Hainan. As part of a broader effort to develop the island into an international tourism destination, the state council also approved experimental offshore financial services.

The cabinet said Monday it plans to develop the island's property sector, by experimenting with real estate investment trusts or REITs. The State Council wants to encourage developers to build premium hotels and resorts in Hainan. Other measures aimed at spurring the island's broader development include expanding oil and gas exploration and offering more duty-free services.

Hainan, the country's only tropical province, is a popular holiday destination in Southeast Asia. The target is to lift tourism to more than 12 percent of the province's GDP by 2020.

China will expand a trial program, allowing  the cross-border trade settlement to use the  yuan, in the Southern island province of Hainan.