Tencent Holdings

Shenzhen-based Tencent said net profit came in at 23.33-billion yuan ($3.39-billion) in the three months ending September 30

A trade war with the US, a crackdown on video gaming and a bear market have dimmed its prospects

Naspers is no longer reliant on its entertainment business cash flow to support new ventures

There may be positive spin-offs for countries like South Africa but the overall global effect will be negative

The shares will be offered to institutional investors globally, subject to customary selling restrictions.

Analysts say shareholders would win if the media giant unbundled its stake in the Chinese firm

Deep business ties between South Africa and China exist not because of but in spite of diplomacy.

Naspers’s market valuation has grown by 440% in the past five years as a result of its stake in Chinese tech company Tencent.

Africa’s largest company saw first-half earnings increase by 39%, owing partly to interests in emerging markets such as China and Russia.

Emerging market stocks fell on Wednesday, led by concern that valuations were overdone.

Investment in e-commerce has negatively affected the media giant’s balance sheet but the company says its strategy is sound.

Stocks in emerging markets have rallied, with India seeing the biggest gains on expectation that the main opposition party will win the elections.

The media giant’s bottom line will pay the price as its development spend jumps from R4.3-billion to over R7-billion this financial year.

The Chinese coporate, in which Naspers is heavily invested, has seen revenue climb as gaming takes off.

Koos Bekker has transformed Naspers from an aging business into the best-performing shares on the JSE – becoming a billionaire in the process.