Tencent profits boom, but worries persist – With insights from The Wall Street Journal
South Africa's equity indices rely more on the performance of Hong Kong-listed internet giant Tencent than any other single factor. The Naspers/Prosus combine have a weighting of over one fifth of the JSE's major indices – with their share prices totally reliant on the machinations of Tencent's, of which they own 31%. So Tencent's financial results, released last night, are significant for both Nasper/Prosus shareholders and also any South African invested in broad-based equity ETFs. As the story below from our partners at The Wall Street Journal unpacks, the good news is Tencent's exponentiality is intact with 28% revenue growth and a 71% profit surge for 2020. The bad news is the regulation-happy Chinese central government has become the biggest risk to the business's long-term prospects. – Alec Hogg
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