Morgan Stanley issues temporary phones for China travel

Morgan Stanley has ordered its Hong Kong-based investment bankers to use separate, company-issued mobile devices whenever they travel to mainland China.

The Wall Street giant recently began requiring employees to carry designated "clean" iPhones and iPads specifically for cross-border business trips, according to a source with direct knowledge of the matter. The Financial Times first reported the policy update on Wednesday, News.Az reports, citing Reuters.

While Morgan Stanley declined to comment and has not officially provided its staff with a specific rationale for the move, the decision comes amid a broader push by international financial firms to safeguard sensitive corporate data while navigating changing regional regulations.

As one of the top financial institutions handling Chinese company listings in Hong Kong, Morgan Stanley's investment bankers travel frequently to the mainland for high-stakes client pitches and corporate due diligence meetings.

The decision to isolate data on temporary travel devices highlights the complex landscape global banks must navigate in the region:

Regulated Networks: Following Beijing's sweeping crackdown on cross-border data flows in 2021, most international banks have been forced to completely ring-fence their onshore Chinese data networks, keeping them entirely segregated from their global IT systems.

Spyware and Surveillance: Using temporary, restricted devices protects global corporate networks from potential device seizures, localized hacking vulnerabilities, or aggressive digital surveillance while operating in heavily monitored jurisdictions.

By limiting data access to localized travel devices, financial firms are aiming to keep sensitive global client records out of reach of foreign data security laws.

News.Az 

By Aysel Mammadzada