The Federated Hermes Asia Ex-Japan Equity Fund has bought shares of Tencent Holdings Ltd. (OTC:TCEHY) despite China's regulatory challenges, citing attractive valuations. The fund, which has outperformed most peers, is optimistic about the Chinese market. Tencent's market value dropped significantly due to new gaming regulations, but the fund sees the current low share price as an opportunity. The fund also prefers Samsung Electronics over Taiwan Semiconductor Manufacturing Co. (TSMC) due to expected cyclical downturns for TSMC and a potential earnings recovery for Samsung.