FT News Briefing Beijing’s new tech control strategy
Jan 18, 2023
Corporate earnings face turmoil as Goldman Sachs reports a two-thirds profit drop, while Morgan Stanley shines with its wealth management boom. Meanwhile, China is shifting its tech strategy, planning to secure 'golden shares' in giants like Alibaba and Tencent. This marks a significant pivot towards more indirect control over key tech firms. Additionally, shareholder proposals around abortion policies are rising, highlighting the clash between progressive and conservative values in corporate governance.
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Diversification vs. Specialization
- Goldman Sachs' profits plunged due to over-reliance on investment banking.
- Morgan Stanley thrived due to its diversified wealth management division.
Shrinking Net Interest Income
- Commercial banks profited from net interest income in 2022 as interest rates rose.
- This income stream is expected to shrink as depositors seek higher returns elsewhere.
China's Tech Control Shift
- China is shifting its tech control strategy from crackdowns to golden shares.
- This allows influence over content and operations without stifling growth.