China’s Draft Cybersecurity Rules Pose Risks for Financial Firms, Lobby Group Warns

China’s Draft Cybersecurity Rules Pose Risks for Financial Firms, Lobby Group Warns
A sign of the China Securities Regulatory Commission (CSRC) is seen at its headquarters in Beijing, China, on Nov. 16, 2020. VCG via Getty Images
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HONG KONG—China’s proposed cybersecurity rules for financial firms could pose risks to the operations of western companies by making their data vulnerable to hacking, among other things, according to a leading lobby group.

The latest regulatory proposal comes at a time when a string of western investment banks and asset managers are expanding their presence in China, either by setting up wholly-owned units or by taking a bigger share in existing joint ventures.