Alec Hogg: China’s strong-arming is bad news for Naspers

Having just returned from a short break in tropical Mpumalanga, I noticed citrus aplenty next to the national road, but never sighted a single avocado tree. Reading the Wall Street Journal's report below explains why: avos have become a magnet for criminal syndicates. With theft having become such a problem, business is also booming for a security firm whose bloodhound Stoffel (what else?) now tracks avo thieves rather than rhino poachers..I've got an interview scheduled on Monday with Naspers/Prosus CEO Bob van Dijk. Its focus is to get his response to criticism from 36 asset managers who blame the Dutchman's financial engineering for an underperforming investment. They may be missing the point. Beijing's strong-arm tactics in Hong Kong are a serious risk to any business based in the former British territory. Naspers/Prosus owns 31% of HK-based Tencent – a stake worth almost 150% of their market caps. Three must-read pieces for Naspers shareholders on WSJ.com this morning:.Most direct is an article reporting how Beijing is accelerating its attack on HK-based internet firms, with Tencent very much in the crosshairs. As mentioned here over the past couple months, China wants to cut profitability – and thus power – of companies like Tencent and is using an anti-trust weapon to implement this. Click here..___STEADY_PAYWALL___.As worrying from a broader perspective is China's attack on HK's free media. Yesterday more than 500 police officers stormed the newsroom of Apple Daily, taking computers and arresting five executives including the publication's editor. Police said the arrests related to (unspecified) articles published over the last two years which "played a crucial part in a conspiracy to encourage foreign sanctions." Click here..The Editorial Board of the Wall Street Journal argues that after the attack on Apple Daily when it comes to Hong Kong, "no business is safe." Tencent included. Click here..Also for your pre-weekend reading list is news of Kenneth Kaunda's passing yesterday at the age of 97. The WSJ's obituary is superb – reminding us how Zambia's affection for Kaunda was based on his decision 30 years ago to step down after a shock election defeat. That example established his legacy as a true African democrat – setting Zambia on a contrasting path to its southern neighbour Zimbabwe. Click here..PLEASE READ – FOR YOUR WSJ.COM ACCESS….As a Premium subscriber you are entitled to full membership of wsj.com (normal price $29 a month). Be sure to action your access through the Premium link on the BizNews website. Because of The Wall Street Journal's credential requirements, be sure to create a password which has at least 8 characters and includes at least one letter and one number – NB it MAY NOT contain any special characters (ie #, !, @ etc). To maintain access to WSJ.com, you MUST enter our partner's website via BizNews Premium at least once a month. A final PS, if you had previously signed up for WSJ you'll need to clear the cookies from your device. Our help desk can assist – support@biznews.com

Alec Hogg: China’s strong-arming is bad news for Naspers

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