ZA Bank has partnered with Industrial Bank to launch its Cross-boundary Wealth Management Connect Southbound Scheme service.
The company said it is the first digital bank in Hong Kong to provide this cross-border investment option.
Under the Southbound Scheme, eligible investors in the nine mainland cities of the Greater Bay Area (GBA) can complete their initial account setup through Industrial Bank.
This process includes opening a mainland remittance account, completing qualification verification, and finishing the required risk assessment.
Once these steps are completed, users can operate a dedicated investment account directly through the ZA Bank mobile application. This allows them to invest in eligible wealth management products in Hong Kong.
Investor eligibility and quotas
The framework allows users to conduct cross-border renminbi transfers between their remittance account at Industrial Bank and their investment account at ZA Bank.
The individual investment quota under the Southbound Scheme is capped at 3 million renminbi.
Applicants must possess more than two years of investment experience and meet the specific income and asset requirements set by regulatory authorities.
The service is not available to customers assessed as vulnerable by Hong Kong banks.
Digital wealth management platform
The integration allows approved users to access the digital banking application around the clock. The initial phase covers renminbi, Hong Kong dollar, and foreign currency time deposits.
The platform also offers low to medium-high risk funds authorised by the Securities and Futures Commission (SFC) of Hong Kong.
This product suite provides eligible mainland investors with additional asset allocation options within a regulated environment.
Closed-loop compliance management
The partnership operates under a clear division of operational roles between the two financial institutions.
Industrial Bank manages the mainland remittance account, while ZA Bank oversees the dedicated investment account in Hong Kong.
All funds within the Southbound Scheme move through an independent closed-loop system that uses the Cross-border Interbank Payment System (CIPS).
Users can only remit capital via the original route between the two dedicated accounts, and they cannot use the funds for external purposes.
Hong Kong laws and regulatory authorities, including the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC), govern the dedicated investment accounts and product sales.
The investor protection mechanism operates strictly under Hong Kong regimes, which differ from the regulatory frameworks in the Chinese mainland.
“Becoming the first digital bank in Hong Kong to launch the Cross-boundary Wealth Management Connect Southbound Scheme is a significant milestone for ZA Bank,”
said Calvin Ng, CEO of ZA Bank.
Ng added that the bank will use its fintech capabilities to simplify the traditional cross-border wealth management process, aiming to make it as clear as daily banking for users.
Featured image credit: Edited by Fintech News Hong Kong, based on image by bunditinay via Magnific