Tighter controls on information technology products used in the financial sector may pose more hurdles for overseas companies in China, industry sources said on Monday.

Overseas companies like IBM Corp and EMC Corp will need to fully comply with the regulations if they want to win deals in the country, said the sources.

According to a report published in the Shanghai-based newspaper China Business News, the China Banking Regulatory Commission, the nation's banking regulator, is conducting a full-scale research across Chinese banks and large financial institutions to gauge the information security conditions. The research involves IT hardware, software and services, it said.