🔒 Alec Hogg: Cape independence critics flayed

The JSE’s most important company isn’t even listed on the South African market. But given that Chinese internet giant Tencent determines the share prices of the exchange’s heaviest weighted stocks – Naspers and Prosus – what happens to Pony Ma’s business is critical for SA investors.

And although the latest quarterlies released this morning are OK (see below) the longer term outlook is positively frightening.
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After decades of super-charged economic growth, China’s Communist Party is changing course. Out goes Deng Xioping’s famous approach to the economy of “it doesn’t matter whether a cat is black or white as long as it catches mice”. In comes Xi Jinping’s new feline which will be forced to distribute the mice it catches in the name of “common prosperity”.

The implications for Tencent – and thus Naspers and Prosus – could hardly be more ominous.  Our partners at The Wall Street Journal this morning published an excellent explainer on the communist party’s return to its core policy – click here.  Chinese capitalists led by Tencent have jumped into line, as you’ll read in the two pieces on Tencent’s results republished below, and an article headlined Rift Forms on Didi’s Board Following Beijing’s Regulatory Assault.

In SA, momentum continues to grow for secession by the Western Cape. Click here (or on the video above) to access my full YouTube interview with Cape Independence Party leader Jack Miller. The polished 37 year old founded the organisation in 2007 to continue the work of his late father who inspired a similar secessionist movement in 1993.

Along the same lines, on Politicsweb this morning one of my favourite columnists, Andrew Donaldson, takes a swipe at recent BizNews Radio guests Peter Hain and Roelf Meyer, who both say Cape Independence is foolhardy.

Finally for today, a private equity plan to inject $273m into supporting New Zealand’s already fearsome All Blacks is running into headwinds. Maybe SA Rugby’s ever innovative Rassie Erasmus can take advantage by luring the financial backers westwards?


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