Chinese Wall
A Chinese Wall is the metaphorical term used for a barrier separating two or more groups (think the Great Wall of China which was built to protect the country from invaders).
In short, therefore, a Chinese Wall in business terms is a policy set up within a company to protect and safeguard certain insider information, be it from members of other departments within the same company or from market competitors and the wider public. The barrier ensures that the flow of information is restricted.
In the world of finance, a Chinese Wall is often set up between those that give advice to businesses on which companies to takeover, and those that give advice to clients about when and with whom to buy shares. In this sense, the wall prevents the leaking of corporate inside information. The restriction of this information is vital as it could influence the advice given to clients making investments and allow staff to take advantage of as yet undisclosed facts.
In the world of business, a Chinese Wall is often set up to contain information within a company and prevent competitors from gaining access to it. For example, if you were part of a team developing a new innnovative product that you hoped would lead the market, you would aim to keep the development of that product secret from other companies in your sector for as long as is possible. In this way they would not be able to imitate your ideas.
