The share price of Naspers rebounded on Monday after falling sharply on Friday, but it is becoming clearer that its investment in China’s Tencent is the tail that wags the dog. Despite attempts to diversify earnings streams, Friday’s sharp retraction in Tencent had an immediate knock-on effect on the R1.2-trillion Naspers as its other diversified interests failed to hold the line. Although development spending has been curtailed, trading losses have risen. Naspers’s shares closed 2.91% higher at R2,845, recovering all of Friday’s losses. It shed 4% in intraday trade on Friday after Tencent lost 5%. Tencent’s sharp retreat came after Chinese authorities started an investigation into Tencent’s alleged cyber-security violations. This included spreading violence and terror, false rumours, obscene pornography and other content that endangered national security. Concern about these steps abated on Monday, but uncertainty about the expected clampdown remains. A seasoned analyst, who cannot...

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