Advanced English Dialogue for Business – Chinese wall

Listen to a Business English Dialogue About Chinese wall

Molly: Hi Maya, have you heard of a “Chinese wall” in finance?

Maya: No, I haven’t. What is it?

Molly: A Chinese wall is a figurative barrier between different departments within a financial firm to prevent conflicts of interest and the sharing of confidential information.

Maya: That sounds important. How does a Chinese wall work in practice?

Molly: In practice, employees on one side of the Chinese wall are restricted from communicating or sharing information with those on the other side, ensuring confidentiality and maintaining ethical standards.

Maya: I see. Are there any specific regulations or guidelines regarding Chinese walls?

Molly: Yes, financial regulators often require firms to implement Chinese walls to comply with laws related to insider trading, market manipulation, and protecting client confidentiality.

Maya: That makes sense. How do Chinese walls benefit financial firms and their clients?

Molly: Chinese walls help enhance trust and confidence in the integrity of financial markets by ensuring that sensitive information is not improperly disclosed or used for personal gain.

Maya: Thanks for explaining, Molly. Chinese walls seem like an important safeguard in the financial industry.

Molly: You’re welcome, Maya. They play a crucial role in maintaining transparency and ethical standards within financial firms.