diff --git a/client/js/libs/handlebars/parse.js b/client/js/libs/handlebars/parse.js
index a6d26df8..6303d895 100644
--- a/client/js/libs/handlebars/parse.js
+++ b/client/js/libs/handlebars/parse.js
@@ -1,8 +1,9 @@
 Handlebars.registerHelper(
 	"parse", function(text) {
 		var wrap = wraplong(text);
-		text = escape(text);
+		text = Handlebars.Utils.escapeExpression(text);
 		text = colors(text);
+		text = channels(text);
 		text = uri(text);
 		if (wrap) {
 			return "<i class='wrap'>" + text + "</i>";
@@ -23,17 +24,6 @@ function wraplong(text) {
 	return wrap;
 }
 
-function escape(text) {
-	var e = {
-		"<": "&lt;",
-		">": "&gt;",
-		"'": "&#39;"
-	};
-	return text.replace(/[<>']/g, function (c) {
-		return e[c];
-	});
-}
-
 function uri(text) {
 	return URI.withinString(text, function(url, start, end, source) {
 		if (url.indexOf("javascript:") === 0) {
@@ -48,6 +38,19 @@ function uri(text) {
 	});
 }
 
+/**
+ * Channels names are strings of length up to fifty (50) characters.
+ * The only restriction on a channel name is that it SHALL NOT contain
+ * any spaces (' '), a control G (^G or ASCII 7), a comma (',').
+ * Channel prefix '&' is handled as '&amp;' because this parser is executed
+ * after entities in the message have been escaped. This prevents a couple of bugs.
+ */
+function channels(text) {
+	return text.replace(
+		/(^|\s|\x07|,)((?:#|&amp;)[^\x07\s\,]{1,49})/g,
+		'$1<span class="inline-channel" role="button" tabindex="0" data-chan="$2">$2</span>'
+	);
+}
 
 /**
  * MIRC compliant colour and style parser
diff --git a/client/js/lounge.js b/client/js/lounge.js
index 413e5b21..b41ef1e1 100644
--- a/client/js/lounge.js
+++ b/client/js/lounge.js
@@ -234,26 +234,6 @@ $(function() {
 		if (text.find("i").size() === 1) {
 			text = text.find("i");
 		}
-		// Channels names are strings (beginning with a '&' or '#' character)
-		// of length up to 200 characters.
-		// See https://tools.ietf.org/html/rfc1459#section-1.3
-		text.html(text.html().replace(/(^|\s)([#&][^\x07\x2C\s]{0,199})/ig,
-				'$1<span class="inline-channel" role="button" tabindex="0" data-chan="$2">$2</span>'));
-		text.find("span.inline-channel")
-			.on("click", function() {
-				var chan = $(".network")
-					.find(".chan.active")
-					.parent(".network")
-					.find(".chan[data-title='" + $(this).data("chan") + "']");
-				if (chan.size() === 1) {
-					chan.click();
-				} else {
-					socket.emit("input", {
-						target: chat.data("id"),
-						text: "/join " + $(this).data("chan")
-					});
-				}
-			});
 
 		if ((type === "message" || type === "action") && chan.hasClass("channel")) {
 			var nicks = chan.find(".users").data("nicks");
@@ -529,6 +509,21 @@ $(function() {
 		});
 	});
 
+	chat.on("click", ".inline-channel", function() {
+		var chan = $(".network")
+			.find(".chan.active")
+			.parent(".network")
+			.find(".chan[data-title='" + $(this).data("chan") + "']");
+		if (chan.size() === 1) {
+			chan.click();
+		} else {
+			socket.emit("input", {
+				target: chat.data("id"),
+				text: "/join " + $(this).data("chan")
+			});
+		}
+	});
+
 	chat.on("click", ".messages", function() {
 		setTimeout(function() {
 			var text = "";