I am waiting for the next batch of new stocks in anticipation and hopefully Tencent will be one of them. However I was thinking which stock would be better to invest in.
The case for Prosus is that it hold around 31% of Tencent. But also other internet/digital companies as well which provides it with some diversification.
Conversely Prosus could in theory sell their stake in Tencent if they wanted to. Which defeats the purpose of me holding Tencent as a long term investment.
Buying Tencent directly would negate the above but brings potential issues as well. The foremost on my mind is this ongoing issue with the US and threats to delist Chinese stocks. Which in my opinion will not happen but theoretical it could be possible.
I suppose I could probably wait until we have access to the HKSE on T212 and buy the stock there!
The other issue is with the recent problems of Chinese stocks being found not eligible for inclusion in ISA accounts. I am hoping T212 do their due diligence on this as I would not like to sell the stock and have it transferred out.
Any thoughts/opinions? I would be especially interested in what @kali thinks as you seemed enthusiastic when Prosus was listed.