Eligible investors from the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) in the Chinese Mainland can complete the opening of a Mainland Remittance Account, qualification verification, and ZA Bank's risk assessment through the partner 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, the firm said in a statement.

The 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.

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.

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 authorised 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.

The partnership features a clear division of roles: Industrial Bank will manage the Mainland Remittance Account, while ZA Bank will manage 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 regimes, which differ from the regulatory framework and protection mechanisms 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, and a concrete action in our participation in the financial connectivity of the GBA,” Calvin Ng, CEO of ZA Bank, said.