ZA Bank Partners with Industrial Bank

Partnership Aims At Launching Cross-boundary Wealth Management Connect Southbound Scheme

ZA Bank today announced its official partnership with Industrial Bank to launch the Cross-boundary Wealth Management Connect Southbound Scheme (the “Southbound Scheme”), marking a milestone as the first digital bank in Hong Kong to provide this service.

Eligible investors from the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) in the Chinese Mainland can first complete the opening of a Mainland Remittance Account, qualification verification, and ZA Bank’s risk assessment through the partner bank (Industrial Bank). Subsequently, they can open and operate a Southbound Scheme Dedicated Investment Account via the ZA Bank App to invest in eligible wealth management products in Hong Kong.

Investors eligibility

This service is only available to eligible GBA investors in the Chinese Mainland. Users can conduct cross-boundary RMB remittances between their Mainland Remittance Account at Industrial Bank and their Dedicated Investment Account at ZA Bank. The individual investment quota under the Southbound Scheme is up to RMB 3 million, allowing users to plan their cross-boundary wealth management systematically within a clear quota framework.

Applicants must be residents of the nine GBA cities in the Chinese Mainland, possess over two years of investment experience and meet the income and asset requirements stipulated by regulatory authorities from time to time. To protect investor interests, the Southbound Scheme is not applicable to investors assessed by Hong Kong banks as vulnerable customers.

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One-Stop Platform for Compliant Wealth Management Products

Upon successful account opening, users can access the ZA Bank App 24/7 to subscribe to a variety of compliant Hong Kong wealth management products. The initial phase covers RMB, HKD, and foreign currency time deposits, as well as low- to medium-high-risk funds authorized by the Securities and Futures Commission (SFC) of Hong Kong (subject to the scope of compliant products stipulated by regulatory authorities from time to time). This provides eligible investors with asset allocation options.

Closed-Loop Management and Regulatory Compliance

The partnership features a clear division of roles: Industrial Bank manages the Mainland Remittance Account, while ZA Bank manages the Dedicated Investment Account in Hong Kong. All Southbound Scheme funds are subject to independent “closed-loop management” via the Cross-border Interbank Payment System (CIPS). Funds can only be remitted via the original route between the two dedicated accounts and cannot be used for other purposes. The Dedicated Investment Account and product sales are governed by relevant Hong Kong laws and regulatory authorities (including the HKMA and SFC). The investor protection mechanism operates under the relevant Hong Kong regimes⁴, which differ from the regulatory framework and protection mechanisms in the Chinese Mainland.

Calvin Ng, CEO of ZA Bank, said: “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, and a concrete action in our participation in the financial connectivity of the GBA. We fully understand investors’ expectations for digital experiences and have simplified the traditional cross-boundary wealth management process. Moving forward, ZA Bank will continue to leverage our fintech advantages to provide a diverse range of eligible products to GBA users within a compliant framework. Our goal is to make cross-boundary wealth management as simple and clear as daily banking, bringing the convenient experience of a digital bank to more users.”