Prosus Vs Tencent

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.

unfortunately you won’t be able to buy Tencent until HKEX is added into the platform. Tencent is only listed in HKEX as 0700.HK and they don’t have any ADRs or ADSs listed on US platforms.

The problematic ones like NIO will include a sentence like this (if you look carefully) “One American depository receipt equal to 4 ordinary XXX shares” then HMRC asks the question “where is the underlying share for this ADR?” and the answer lets say for NIO is “Cayman Islands” then HMRC says, “no thank you”

And since Tencent is listed as an ordinary share in HKEX main index, it can be bought in any wrapper including ISA, and you are not buying an ADR you are directly buying the share.

1 Like

An article about why “prosus” even exists, when there was a giant behind it like “naspers”

It all boils down to, Tencent price ballooning.


So then, what is TCEHY on OTC?


Also, I seem to remember that David mentioned that the aim was to add Tencent (OTC) in the next batch.


Hi @kali ,

I remember in a previous post that @David hinted the possibility of adding Tencent as an OTC stock in the next batch. Which I think is more likely to happen quicker than access to HKSE…but who knows! But you are right that buying Tencent on the HKSE would be a better solution especially as there is no dividend or withdrawal tax for UK residents.

@Vedran @EquityInvestor

You guys are too quick :slight_smile: I just replied to @kali with the same comment about Tencent being listed as OTC.

1 Like

I was going to mention it in my original post that Prosus is partially owned by Napser. But wanted to keep it simple. Also how likely will Napster be offered on T212?

I think buying Napser would end up being like an investing version of those “Russian dolls”. Buying Napser open up buying Prosus, which oprns up buying Tencent, which opens up…etc etc. It will be hard to keep track of all those individual sub investments and how it will affect the main investments in Napster, Tencent, Prosus.

EMIM has Tencent as one of the top holdings at 5% so worth a look. Maybe other ETF’s have higher allocation but not sure on that.

1 Like

VFEM has it at an even higher 6.44%. FXC at 9.25%. EMIM is currently at 5.6%. I just checked.

1 Like

Hi @trader787 @Richard.W

Thanks for your reply. I suppose that buying an ETF is another option. It would be like buying Prosus in that there is some diversification and not reliant on one stock.

I seem to remember that some of the China ETFs (MSCI China maybe) had Tencent at around 10% if you are interested.

Finki’s tool indicates these percentages of “Tencent” in the following ETFs:


1 Like

I was going to stubbornly repeat tencent is only listed in HKEX then I found this on Frankfurt (got no idea what it is)

But as far as I know OTC pink is not an exchange as in the traditional sense, they can and may sell anything as through brokers and intra-brokers. In that sense you can argue “everything is listed in OTC pink.” You’ll get the same security you’d buy from HKEX converted from HKD to USD and potentially with 2 broker commissions.

What is Over-The-Counter (OTC)
OTC pink

in layman’s terms, If “kali” had a share of Tencent, he could’ve sold this to “Vedran” over the counter. OTC pink is a “forum” where Vedran and Kali could’ve made this trade without actually contacting eachother by posting a WTB tencent or WTS tencent post, if we have to be members of Finra and SEC :slight_smile:

edit coming hours after initial post: I clicked on the benzinga link you posted and realised it actually explains it better than me and fewer words :slight_smile:

1. Buy OTC-traded Tencent stock

You’ll need an account with a full-service or discount brokerage. Since O TC-traded shares are unlisted, purchases have to be routed through market makers who possess an inventory of securities . Once you place an order with your broker, it will then get in touch with the security’s market maker. The market maker quotes his ask price and it’s then matched with the bid price.

The bid-ask-quote is available through the over-the-counter bulletin board or OTCBB. If the order placed is a market order, the broker has to accept the ask price. Once the broker transfers money to the market maker’s account, the latter will transfer the security to the broker’s account. Alternatively, the order placed can be a limit or a stop order.

so… in before questions on the forum like: "hey Tencent on google is $100 how did my order executed at $103?


also if this is possible Meituan Dianping should be up there with tencent to be added.

1 Like

Coincidentally Meituan Dianping is also backed by Tencent.

See what I mean by my remark on the investing version of “Russian Dolls” :smiley: