FT News Briefing China wrestles with an overseas debt crisis
Aug 2, 2022
Instagram's head is relocating to London, stirring discussions about tech competition. HSBC is looking to return dividends to pre-pandemic levels amid economic shifts. Meanwhile, China is grappling with its first overseas debt crisis, shedding light on the struggles of its Belt and Road Initiative. The rising concerns over bad loans and the implications for international infrastructure projects highlight the precarious balance of global finance and development.
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Instagram CEO Moves to London
- Instagram CEO Adam Mosseri is moving to London, possibly to cut costs and compete with TikTok.
- UK engineers are generally less expensive than those in San Francisco.
HSBC Breakup Pressure
- HSBC faces pressure from Ping An, its largest shareholder, to break up due to the dividend ban.
- Ping An was unhappy with London's control over the bank, which primarily earns in Asia.
HSBC Dividend Importance
- HSBC's dividend promise is crucial for its Hong Kong retail shareholder base.
- This group, unusually large for a bank, relies on the dividend as income.