Hong Kong — 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’s shares while going long Taiwan Semiconductor Manufacturing (TSMC) could have made as much as 54% in the three months to the end of September. The Hong Kong-listed gaming giant had its worst-ever showing relative to global tech, shedding about $84bn in market value since the end of June, just as the Taiwanese chip maker added $39bn. The latter’s out-performance was the widest on record. Tencent, which is 31% owned by JSE-listed Naspers, is struggling to bounce back from this year’s lows after China got stricter on online games, the latest in a string of bad news that included the company’s first profit drop in at least a decade. Meanwhile, investors flocked to TSMC after a US competitor quit trying to develop the most advanced chip production technology...

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