Wall Street’s ambitions run into a rising firewall

Banks’ most imminent concern is complying with China’s strict new rules limiting the ability of companies to transfer data from the mainland across borders. — Bloomberg

ONE of Wall Street’s biggest banks stopped briefing the head of its subsidiary in mainland China on sensitive company strategy, so the government can’t eavesdrop or demand details later.

At nearby outposts for other US and European banks, executives are spending tens of millions of dollars to locally house financial data and set up on-site internal controls. Some units are even looking at reshaping balance sheets to stand separate from parent companies.