Big Short's Michael Burry is known for netting hundreds of millions of dollars by betting against the US real estate market during the 2008 global financial crisis.
His contrarian approach is also evident from his trades, like buying water assets, forecasting future scarcity, and investing in GameStop before it was a meme stock. Burry shuttered his hedge fund Scion Asset Management a few months ago, citing that market fundamentals don't align with his investment philosophy anymore.
After a two-year hiatus, Burry emerged on social media in 2025 with severe warnings for the US stock market and the economy amid fears of an AI bubble.
In a recent Substack post, Burry revealed that he has opened positions in multiple beaten-down Chinese stocks. 'JD is a significant add, and Alibaba is a new position, a little over 6%,' with JD 'a bit more than that,' Burry had stated in his post.
Both stocks have struggled in recent years due to regulatory challenges and China's economic growth slump. However, Burry's disclosure as well as comments like JD.com currently offers 'an attractive entry point' had a positive impact on the stocks. Both JD.com and Alibaba shares rose during after-hours trading on Thursday.
Although investors continue to focus on leading AI growth stocks, Burry has been worried about consistent overvaluation in the sector and the meagre output relative to record investments in building AI models. His latest pivot could mean he is seeking investment opportunities in global technology and finance firms that continue to trade at cheap valuations. Burry has also disclosed placing massive bets against Palantir Technologies and Nvidia.
When Burry Said Integrity of Hong Kong Stocks Flawed
In a series of posts on X earlier this year, Burry had issued a warning to investors in Chinese tech giants, claiming that the structural integrity of Hong Kong-listed stocks is fundamentally flawed.
He had argued that many who bet on firms like Alibaba and JD.com do not actually own the companies, highlighting the use of Variable Interest Entities—Cayman Islands shell companies with no real operations—as a critical vulnerability.
'First we must take a considerable detour and fully examine a vulnerability that applies to almost all these stocks,' he wrote. 'For all of the above but BYD and Haidilao, the actual shares bought by investors are shares of a Cayman Islands shell company with no operations.'
He opined that Hong Kong stocks are in the 'dumps,' while highlighting a divergence between corporate revenue and stock performance. Burry explained that companies like Netflix, Broadcom, and Tencent recorded revenue growth of up to five times in the past decade, but Tencent's stock has 'almost exactly a 0% return' over the last five years.
'This is the problem. All of Hong Kong's massive tech stocks became massive since 2007, and the Hang Seng is today ~27,000, 15% lower than 2007,' he said, adding that the 'easy credit environment' and the potential for government intervention 'undercut the economy' and impacts foreign direct investment.
Referring to his Asia Fund letter to investors in 2005, Burry stated that while he tracked the emergence of 'global ambitions' in companies like Alibaba and Tencent years ago, the 'numbers game' has shifted.
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