Boardroom Talk: Tencent’s 35% rebound has Naspers/Prosus fans all aflutter – but wait a minute…

Chinese internet giant Tencent – the foundation on which Naspers/Prosus shares are valued – has enjoyed its best month in ages, gaining 35% in November so far. Punters have climbed into the stock on the "too cheap" mantra after Tencent's price fell by almost 60% this year. Where Tencent goes, Naspers/Prosus follow. The pain, and recent glory, has been shared.

Tencent bulls have been quoting Chinese premier Xi Jinping's conciliatory approach towards US president Joe Biden, which suggests the recently feared Taiwan invasion has returned to the back burner. Also, that the all-powerful leader has at last been throttling back on the country's intense Covid restrictions, promising full reopening of the economy.

It's worth remembering, however, that there is zero change to Xi's anti-business "common prosperity" agenda. Or that Beijing's moralistic approach to video gaming (Tencent's profit staple) has also not been moderated. So there's little hope of an early reverse in the sharp contraction on Tencent's sales of domestic games.

___STEADY_PAYWALL___