China Internet Security Stocks Rally on Snowden on speculation they will benefit from increased demand to protect domestic computer networks
June 23, 2013 Leave a comment
China Internet Security Stocks Rally on Snowden: Shenzhen Mover
Surfilter Network Technology Co. jumped to a record as Chinese Internet security companies rallied on speculation they will benefit from increased demand to protect domestic computer networks.
Surfilter Network Technology, which provides website security products, jumped 6 percent to 25.49 yuan at the 11:30 a.m. local-time break in Shenzhen. Bluedon Information Safe Technology Co. (300297) added to yesterday’s 10 percent jump, rising 3 percent to 23.98 yuan. The Shenzhen Composite Index slid 1.1 percent, while the Shanghai Composite Index (SHCOMP) dropped 1.2 percent.China on June 17 called on the U.S. to explain a surveillance program that was revealed by former National Security Agency contractor Edward Snowden. In an interview with the South China Morning Post, Snowden said the U.S. had been hacking computers in Hong Kong and mainland China since 2009.
“After the Snowden incident, the China government will need to emphasize more on Internet security and also come up with domestic companies for our own information data purposes,” Liu Xing, an analyst at Guodu Securities Co., said in a phone interview in Beijing today.
Snowden disclosed this month that the NSA is collecting millions of U.S. residents’ telephone records and the computer communications of foreigners from Google Inc. and other Internet companies under court order.
Intelligence-gathering efforts by the U.S. have helped prevent more than 50 terrorist attacks in more than 20 countries, including one planned on the New York Stock Exchange, government officials said yesterday. President Barack Obama said in an interview with Charlie Rose the intelligence community is in the process of determining “how much of this we can declassify without further compromising the program.”
The U.S. should pay attention to concerns over the surveillance program and “give the international community a necessary explanation,” China’s Foreign Ministry spokeswoman Hua Chunying said at a briefing in Beijing on June 17.
A House Intelligence Committee report last year urged U.S. companies to steer clear of Huawei Technologies Co. and ZTE Corp. on concerns the Chinese government could install malicious hardware or software in U.S. telecommunications networks.
— Editors: Allen Wan, Ravil Shirodkar
To contact the reporter on this story: Weiyi Lim in Singapore at wlim26@bloomberg.net;
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