THE recent clampdown on illegal foreign exchange activities is a reminder to China that the road to a full-fledged forex market can be very bumpy, says Lam Yun-ming of the Bank of China's treasury department. He said: ''Forex trading is an information business. China's existing telecommunications infrastructure and computer technology are not adequate to support forex activities.'' A proper system to manage the risk and a code of conduct for dealers should also be developed, he said. A legal framework, such as arbitration law, must also be in place, he said. In addition, training for forex dealers was necessary in order to ensure that they could handle these high-risk activities, he said.