TCEHY - Why This High-Performing Fund Is Betting On Tencent Amid China's Regulatory Storm | Benzinga
In the face of continued industry restrictions in China, a high-performing fund has decided to reintroduce Tencent Holdings Ltd. (OTC:TCEHY) to its portfolio based on the company’s appealing valuation.
What Happened: The Federated Hermes Asia Ex-Japan Equity Fund, which has outperformed 83% of its peers over the past three years, recently bought Tencent shares, reported Bloomberg on Thursday. Despite the Chinese government’s release of a draft rule on gaming limitations in December, the fund manager, Jonathan Pines, is optimistic about the market in China, which he believes has “absolutely incredible” valuations.
Once Asia’s second-most valuable company, Tencent saw a significant decrease in its market worth due to the new regulations. However, its shares are still trading at a very low price. The fund’s purchase of Tencent expresses its confidence in the Chinese market and its attractive valuations.
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