(Reuters) – Morgan Stanley is shifting more than 200 technology developers out of China after the country tightened access to cache of data stored onshore, Bloomberg News reported on Tuesday, citing people familiar with the matter.
Most of the employees are being moved mainly to Hong Kong and Singapore, according to the report, adding that the U.S.-based bank is building a standalone China system to comply with local regulations.
The U.S. views the new counterespionage law as a potentially harmful to U.S. firms.
Morgan Stanley did not immediately respond to a Reuters request for comment.
The new infrastructure, which may cost hundreds of millions of dollars, will be incompatible with Morgan Stanley’s legacy global platforms as the lender overhauls its Asia strategy of handling client records, the report said.
(Reporting by Shubhendu Deshmukh in Bengaluru; Editing by Rashmi Aich)
