Financial safety highlighted as Olympic Games approach

By Leo Zhang  |   2008-7-10  |     NEWSPAPER EDITION

CHINA'S stock regulator has ordered domestic brokerages and fund management firms to beef up efforts to ensure the safety of their information and trading systems as the Olympic Games approach, sources said yesterday.

Brokers and fund houses must separate their external Websites from internal information platforms and make a sound back-up of important data, the sources said, citing notices by the market watchdog.

"We were informed last month by the regulator to enhance safety of the information technology system," said a Shanghai-based brokerage source. "Authorities have demanded there be no big technical problems during the Olympics."

Emergency plans must be set up to counter the potential outbreak of computer viruses or attacks by hackers in July and August, the sources said, citing requirements by the stock authority.

The China Securities Regulatory Commission has been urging domestic brokers to improve trading systems after a series of technical glitches spurred complaints from investors.

The country's two exchanges in Shanghai and Shenzhen now require member brokerages to file monthly trading reports, which should include any abnormal share trading by clients or any big technical problems.

Senior executives at mainland securities houses and fund firms must apply to the stock regulator if they want to leave the country for vacations or industry conferences, the sources said yesterday.

General managers and deputy general mangers at stock and fund firms have been asked to place their passports with a special department under the stock regulator and can't go abroad unless they get approval.

"The authority hopes senior executives can respond swiftly to any emergencies," another local securities source said. "Going aboard is not totally forbidden but it's not encouraged."