Tencent Pair Trade That Earned a Quick 54% Now Looks Crowded
- Gap between Asia’s tech giants widened to record last quarter
- TSMC’s relative outperformance will slow, says Eastspring
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Betting on the widening split between Asia’s two tech darlings would have been a slam-dunk trade in the third quarter. The question is whether it’s still worth chasing.
Anyone with the foresight to short Tencent Holdings Ltd.’s shares while going long Taiwan Semiconductor Manufacturing Co. could have made as much as 54 percent in the three months through September. The Hong Kong-listed gaming giant had its worst-ever showing relative to global tech, shedding about $84 billion in market value since the end of June, just as the Taiwanese chipmaker added $39 billion. The latter’s outperformance was the widest on record.