Chinese brokerages urged to tighten scrutiny over sensitive info -Securities Times

SHANGHAI, May 11 (Reuters) - Chinese regulators have told securities firms to strengthen compliance over controlling the spread of sensitive information as well as expert invitation and interviews, the official Securities Times reported on Thursday, citing brokerage sources.

The securities regulator , following an onsite inspection of 300 research reports from 45 brokerages, comes amid Beijing's anti-espionage campaign as the Chinese police raided a series of consultancies and due diligence firms.

Police raided office of China's largest "expert " group Capvision over what state media this week reported were security issues. Such expert link industry experts with investors, often through brokerages.

The Securities Times reported on Thursday, citing the regulator , that some brokerages are lax in their compliance procedures and identification checks when inviting external experts.

It was clear if the was issued by the China Securities Regulatory Commission (CSRC) or its local branches.

Regulators urged brokerage analysts to carefully examine whether the institution or industry information acquired from experts is legal and compliant.

Brokerages are also banned from spreading sensitive, or information that endangers security, and urged to step up checks on sourcing of reports in sensitive areas to strictly prevent leakage of secrets, the said.

Sources told Reuters this week that CICC Capital, a unit of leading Chinese investment bank CICC 3908.HK, had stopped using Capvision' services.

(Reporting by Shanghai ; Editing by Lincoln Feast.)

((samuel.shen@thomsonreuters.com; +86 21 20830018; Reuters Messaging: samuel.shen.thomsonreuters.com@reuters.))