China’s plans uplift Naspers's Tencent

Tencent's headquarters at Nanshan Hi-Tech Industrial Park in the southern Chinese city of Shenzhen. File picture: Bobby Yip

Tencent's headquarters at Nanshan Hi-Tech Industrial Park in the southern Chinese city of Shenzhen. File picture: Bobby Yip

Published Jul 16, 2013

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Tencent Holdings led technology stocks higher in Hong Kong trading yesterday after China’s central government announced plans to boost the telecoms industry.

JSE-listed Naspers holds 34 percent in Tencent, which climbed 3.7 percent to HK$321.40 (R412.80) by closing, the highest since China’s biggest internet company listed in 2004.

Private investment in telecoms would be encouraged and upgrades to internet and communications infrastructure would be accelerated, the central government said on its website on Friday.

Ting Lu, an economist at Bank of America Merrill Lynch, said yesterday that the plan included pushing forward the connection of homes to fibre-optic networks, enhancing third-generation wireless networks and issuing fourth-generation licences by the end of the year.

Kevin Tam at Core Pacific-Yamaichi International in Hong Kong said: “Investors are optimistic on internet stocks. They have a more secure economic outlook amid uncertain macroeconomic elements in China.”

Tencent has gained 29 percent this year and is the best performer on the Hang Seng index this year.

The benchmark has fallen 6 percent so far this year.

Naspers rose 1.02 percent to close at R791 yesterday, off a high of R800 during intraday trade. – Bloomberg and Asha Speckman

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