Southern China's island province of Hainan has launched a 3 billion yuan ($449 million) fund for free trade zone (FTZ) construction, local authorities said on February 24.

The municipal government of Sanya, a popular tourist city, and Hainan Development Holdings Co. Ltd. each invested 1.5 billion yuan ($224 million) to set up Hainan Pilot Free Trade Zone Opening and Development Fund. The fund, with a target scale of 50 billion yuan ($7.48 billion), will offer financial support for projects in Hainan.

Tong Daochi, Party secretary of Sanya City, said the fund will aid the development of the environmental protection industry and small and micro businesses in Hainan, and help the province build itself into an international tourism consumption center.

Hainan was approved in April 2018 to build a pilot free trade zone covering the whole island and explore the establishment of a free trade port with Chinese characteristics.