Hong Kong Stock Exchange Investigates Hacking Attack
Monday, August 15, 2011

Hong Kong Exchanges and Clearing Limited (HKEx) has provided information on the hacking attack that, on August 10, caused disruption of service to its news website, used to make company announcements.

Since the interruption, it has been confirmed that HKEx’s information technology team is been working closely with local and overseas security experts, including the Hong Kong police, to investigate the cause of the attack and restore normal service.

In the course of the investigation, it has been determined that a mixture of attacking techniques had been deployed to intentionally interrupt the operation of the HKEx news website, and that the malicious traffic originated from a network of personal computers, the majority of which were based outside Hong Kong.

It was further confirmed that, on the same day, experts from the technology vendor supplying HKEx’s intrusion protection technology successfully implemented a filter mechanism to fend off further attacks, but that HKEx has still been observing malicious traffic attempting to access the HKEx news website and is continually adjusting and strengthening the filter mechanism.

While further investigations are being undertaken, HKEx has adopted a series of measures to ensure the market functions normally and investors continue to have timely access to announcements by issuers. In view of the risk of possible further organised attacks on a central depository of company disclosures, HKEx will seek to implement a more decentralised model for investors’ access to company announcements.

For example, from August 12, HKEx will publish paid advertisements in selected local newspapers with a list of companies which plan to release results announcements. It was noted that under this arrangement, and where the listed company has published its results on its website, the investing public will be deemed to received have free, equal and timely access to results announcements under the Listing Rules. This measure will be in place until a further review.

Over the long-term, The Stock Exchange of Hong Kong, in consultation with the Listing Committee and the Securities and Futures Commission, will explore the feasibility of an enhanced distribution model whereby the transparency of the market relating to issuers’ disclosure will be expanded beyond the HKEx news website.

HKEx Chief Executive Charles Li said the disruption of service had been a painful but necessary decision to make. “We chose to follow our long tradition of protecting retail investors,” he added. “I regret our choice resulted in many investors not being able to trade.”

Following the new measures to give greater flexibility to information distribution, he confirmed that “investors will continue to receive information from multiple, diversified channels. If any particular site is being attacked, we will be less susceptible to such abuses.”