Hi FBwdude,
It's been my personal experience, and from word of mouth from those working there, that Hainan simply does not honour the contract that they offer. They make promises they have no intention of keeping and a master or creating window dressing so as to make the job look appealing. They are unwilling to negotiate terms of the contract which are vague or extremely punitive (and yes the monetary punishments are quite severe at times). I am a highly experienced A330 Captain and have worked in China/Asia since 1997 and they wanted to hire me on the spot when I applied. Once I began tabling my issues with the contract on offer I was told by my broker that they do not negotiate - regardless how offensive it was. The poor treatment of foreign pilots is becoming legendary and even the local pilots (those that thought Hainan was the place to go) are starting to reconsider a move there after listening to the feedback. The truth is that working for a Mainland Chinese Airline is very unfulfilling but it pays extremely well. It really isn't for everyone, especially those that are inflexible. Even as a Captain, I have to play the chameleon very well; a role that I thought was relegated to First Officers.
Bottom line: read the contract and understand it. If you don't understand it get legal advise so that you do. Once your diligence is complete then you are in a better position to make an informed decision.