China’s newly tightened rules on data access has reportedly driven Morgan Stanley to relocate 200 of its tech staff out of mainland China.
Morgan Stanley is relocating over 200 tech developers out of mainland China, according to a «Bloomberg» report citing unnamed sources. Most of the relocation has been completed, with staff primary moving to Hong Kong and Singapore.
The bank’s remaining staff on the mainland have started to build a standalone China system, that is expected to cost hundreds of millions of dollars. The new infrastructure will comply with local regulations and be incompatible with Morgan Stanley’s legal global platforms.
The latest moves are part of Morgan Stanley’s revamped Asia strategy for handling client records in response to China’s new law which restricts the transmission of sensitive information out of the nation. Other banks have also increased costs to comply with the new rules, most commonly through the establishment of onshore data centers, according to the Asia Securities Industry & Financial Markets Association.
