When was the Chinese wall built and what is a Chinese wall

The Chinese wall refers to the isolation between the investment banking department and the sales department or trading personnel to prevent the leakage of sensitive information, which constitutes insider trading. A few decades ago, in order to restrict investment banks from using their information superiority and financial strength to publish reports and analytical research reviews that distort facts, they imposed that "the research department must be independent". The term "chinesewall" was adopted as the title of its image, implying that the isolation should be as strong as the Great Wall of China.

Basic Information. Chinese name.

Chinese wall. Foreign name.

chinesewall

Definition Segregation between the investment banking department and the sales department or trading staff.

Objective: Prevent the leakage of sensitive information.

Reason for setting up The independence of the research department is sacrosanct.

1. The Chinese wall is a prerequisite for the realization of the "Three Publics". It requires investment banks not to use their research prowess to deceive other investors, or even encourage other investors to pay for themselves. This is the lifeblood of the survival and development of investment banks and even capital markets.

Second, make the business operations of investment banks, especially investment banking business, self-operated and wealth management on behalf of customers, and all other businesses, more rational and in line with economic laws.

The relationship between research and other departments is like the relationship between a person's brain and hand. A normal person must have the brain dominating the hand to do something, and the person whose hand always dominates the brain to do things is an epilepsy patient. However, there are many such investment banks in the capital market that have epilepsy.

Therefore, there are only a handful of investment banks in the world that can be called century-old.

The operation of a rational investment bank should be "where the research department is, the other departments will hit", rather than "where the other departments point to, the research department will cooperate with other departments".

I always think that my brain is smart and I talk with my mouth crooked, and the hands below start to put things in my pocket, how is this different from a thief? Look at what happens to thieves in this society to know what their future holds.

When an investment bank tells everyone that so-and-so is a gold mine, and the rest of its own department shares in that gold, it's not to blame. The scary thing is to tell everyone that this is a gold mine, but at the same time throw away these "gold mines" like garbage. I believe that one day, I will be dumped like garbage by the market.

At present, the biggest problem that can be solved in the capital market is the governance of brokers. The fatal problem is that research and other sectors are colluding with each other, making the market fairness that they are supposed to bring about a shadow in the mirror. The governance of securities companies is by no means solved by capital injection, and the only way to solve the problem of survival and development of securities companies is to build China's "China Wall".

Chinese wall (chinesewall), the first word with the meaning of the backbone of the Chinese nation, has collapsed in China, or it has not been established at all. It is no wonder that some people say in an extreme way that China's economy is like a huge puddle of mud, with no backbone and no rules.

Chinese Wall The Chinese wall, also known as the Great Wall and the Great Wall, refers to the prevention of conflicts of interest between various departments that harm the interests of customers through administrative regulations and divisions, internal monitoring, IT systems and other means. For example, within an investment bank, there is a firewall between the investment banking department and the brokerage and research department, as well as between the brokerage and research department and the asset management department, which is responsible for the company's IPO financing, and the core customer and work information between different departments cannot be disclosed to each other.