Founder and chief executive of Ranmore Fund Management Sean Peche joins Alec Hogg in this riveting, yet concerning interview on the Chinese governments interference with business in the east. Over the past twelve months or so, Chinese regulators have significantly clamped down on big tech and emerging global giants, which in many cases have dual listings in the States. Of significant concern to South African investors is the lopsided weighting carried by the Naspers stable. Sean tells the tale of a Russian oil company, Yukos, which he was invested in. The brutal Russian regime ‘ripped its guts out and left shareholders with nothing’. Could the same happen to Naspers? – Justin Rowe-Roberts
Sean Peche on the Chinese regulators interferences with Tencent:Â
One of my employees quite rightly says that you want to learn from the mistakes of others. I made the error many years ago of being invested in Yukos which was listed in Russia and basically the Russian regime stole the company, ripped the guts out and shareholders lost everything. I’m seeing the same sort of action in China. It really does worry me that many South Africans and South African savers have got so much money invested in the Naspers stable. I have got no exposure to Naspers and I don’t want people to make the same mistake I made many years.
On the troubles that newly listed Didi are facing by Chinese regulators:Â
They (the regulators) have ordered all local app stores to remove the Didi app from their app stores. In the US, if a similar action were to occur, you would find Uber suing the government, appealing and getting an urgent injunction. I don’t think that’s going to happen in China. If you are so concerned about the data, why does that only apply to new users? Cause presumably most people that are going to use the Didi platform already have it. It’s just a message.
On Didi’s apology to the Chinese government:Â
I think it just shows you where the power lies. In China the government is in charge. When you start thinking about a moat, do any of these Chinese companies have a moat, I guess all you could say is look how quickly the Chinese government stormed the drawbridge. I would argue there is no moat in China. So that is the worry.
Read also:Â
- Alec Hogg: China’s strong-arming is bad news for Naspers
- Shareholders really don’t have a say – Delphine Govender on Naspers
- “Who wouldn’t want the Naspers top job?” Steven Nathan
