Strategy for Wealth Appreciation and Global Deployment Using NRA and FT Accounts

Translation

In the context of deepening global economic integration, individuals and corporations are increasingly seeking diversified and international asset allocation. Particularly amid fluctuating RMB exchange rates and relatively limited domestic investment channels, how to achieve wealth appreciation and international portfolio through legal and compliant means has become a focal point for more high-net-worth individuals. Among various international financial instruments, Non-Resident Accounts NRA and Free Trade Accounts FTAs, due to their flexible fund transfer capabilities, lower regulatory barriers, and tax incentives, have gradually become key tools for cross-border financial management. This article will explore the practical applications of these accounts in wealth management and global asset allocation, starting from their fundamental concepts and incorporating recent market developments.

I. NRA Account A Key Channel for Cross-Border Capital Flow

An NRA account is a Renminbi or foreign currency account opened by overseas entities or individuals at banks within China. It is primarily used for cross-border trade settlement, repatriation of investment returns, and asset allocation. In recent years, with the gradual liberalization of China’s capital account, the functions of NRA accounts have become increasingly sophisticated, serving as a vital bridge connecting domestic and offshore funds.

For example, in the third quarter of 2025, the State Administration of Foreign Exchange further optimized NRA account management policies, allowing qualified overseas investors to participate in A-share and bond market transactions via NRA accounts. This initiative not only enhanced the convenience of inbound foreign investment but also provided more investment opportunities for individuals and companies holding NRA accounts.

Specifically, the advantages of NRA accounts are mainly reflected in the following areas

1. Free Flow of Funds NRA accounts can receive income such as foreign investment principal and profit dividends and can be directly used for domestic investments or remitted back abroad, avoiding cumbersome procedures associated with traditional foreign exchange conversion processes.

2. Multi-Currency Management Most banks support the establishment of accounts in multiple currencies including USD, EUR, and HKD, facilitating currency hedging and asset diversification.

3. Tax Compliance Operations under an NRA account comply with Chinese tax and foreign exchange regulations, helping to mitigate legal risks during fund transfers.

II. Free Trade Account The Foundation for Building a Cross-Border Financial Platform

Free Trade Accounts FTA, particularly Free Trade Accounts FT, are special account systems introduced under China's pilot free trade zones. They allow enterprises and individuals to open integrated domestic and foreign currency accounts within designated areas, enabling seamless transfers between onshore and offshore funds.

Take the latest policy issued by the Shanghai Pilot Free Trade Zone in September 2025 as an example the zone further expanded the scope of FT account usage, allowing certain high-net-worth individuals to apply for personal FT accounts for purposes such as overseas education expenses, property purchases abroad, and securities investment. This move marks a shift in FT accounts from being enterprise-focused to gradually extending to individual users, opening new pathways for ordinary investors toward internationalization.

The core advantages of FT accounts include

1. Market-Determined Interest Rates Deposit and loan interest rates in FT accounts are determined by the market, making them more attractive compared to traditional accounts.

2. Convenient Cross-Border Financing Low-cost offshore financing can be accessed through FT accounts for use in domestic operations or reinvestment.

3. Integrated Domestic and Foreign Currency Management Enables seamless currency conversion and unified management of RMB and foreign currencies within a single account, enhancing fund utilization efficiency.

III. Synergy Between NRA and FT Accounts

While NRA and FT accounts each offer unique functionalities, in practice, they can complement one another to form an efficient cross-border asset management system.

For instance, a high-net-worth individual interested in overseas investment may receive investment returns into an NRA account and then transfer those funds to an FT account to take advantage of its cross-border investment permissions-such as purchasing offshore financial products or participating in offshore funds. Meanwhile, the FT account can serve as an intermediary platform for currency hedging and asset conversion, thereby reducing uncertainties caused by exchange rate fluctuations.

Similarly, when enterprises engage in cross-border mergers and acquisitions or overseas investments, they can first consolidate overseas funds through an NRA account and then use the FT account to complete legally compliant capital outflows, achieving closed-loop fund management while improving operational efficiency.

IV. Practical Application Scenario

Consider the case of Mr. Zhang, founder of a tech company who owns a startup in the U.S. and plans to repatriate proceeds from partial equity liquidation for domestic investment. He chose to set up an NRA account in the U.S., depositing the proceeds from the share sale, and then used an FT account to allocate part of the funds toward establishing a research center in the Shanghai Free Trade Zone and the rest toward purchasing offshore bonds for asset diversification.

Throughout this process, Mr. Zhang fully utilized the fund consolidation capability of the NRA account and the cross-border investment authority of the FT account, achieving efficient fund utilization while effectively navigating foreign exchange controls and tax issues.

V. Future Trends and Recommendations

As China continues to integrate into the global financial system, the functionalities of NRA and FT accounts are expected to expand further, especially in areas such as digital finance and green finance, where these accounts will play a crucial role in promoting cross-border investment and financing cooperation.

For investors aiming to internationalize their portfolios, the following recommendations are advised

1. Plan Account Structure in Advance Based on personal asset status and investment goals, prudently allocate funds between NRA and FT accounts.

2. Monitor Policy Updates Closely follow regulatory changes related to both account types to ensure compliance.

3. Seek Professional Advice Engage professional financial institutions or consultants during account opening, fund transfers, and tax reporting to enhance overall asset management efficiency.

In conclusion, NRA and FT accounts are not only effective tools for wealth preservation and growth but also essential platforms for individuals and enterprises pursuing international expansion. Within the framework of legality and compliance, the strategic use of these two account types can help build a more robust and diversified global asset allocation system.