Last month, top South African investment journalist Stephen Cranston referred extensively to the most recent edition of CredoNews in a column for leading publication Financial Mail.
After an introduction in which he mentions how Credo has been prospering as a business, he quotes from a feature article by Deon Gouws, Chief Investment Officer at Credo Wealth, as follows:
"In the latest CredoNews, Gouws writes a note titled "Investing in China: caveat emptor". With lots of pictures of the Forbidden City in the brochure I can imagine he would have loved to change this to "caveat emperor". We seem to be seeing the rebirth of Chinese imperialism, after all".
Gouws points out that just three of the top 10 holdings in the EMQQ, an emerging-markets internet and e-commerce exchange traded fund, are not Chinese, and of these, one, Naspers, is a proxy for Chinese giant Tencent.
But Gouws warns that Naspers doesn't own its shares in Tencent in the sense understood in the West.
It has an exposure through a structure known as a variable interest entity (VIE). The listed entity is wholly owned by Chinese citizens and typically the tech firm's founders. Crucially, it holds the operating licences."
Following some further explanatory remarks, he then focuses on another article from the same edition of CredoNews, as follows:
"Credo analyst Alison Norbury says there are plenty of ways to exploit the China and broader Asian growth story without resorting to VIEs, such as the insurers AIA and Prudential and casino group Las Vegas Sands in Macao."