Michael Burry Bets Big on Chinese Stocks—Are You Buying In?

 

Hey everyone! So, Michael Burry, the guy who inspired The Big Short, has been making some big moves with Chinese stocks. According to his fund's latest filing, he's been doubling down on names like Alibaba (BABA), JD.com (JD), and Baidu (BIDU), all while hedging his bets with put options. It's a bit of a mixed strategy—he’s bullish on these stocks long-term but is definitely taking precautions against short-term downside. Basically, he's making sure he's covered just in case the market doesn't play along.

 

 

It's pretty interesting that Burry is still this high on Chinese stocks, especially after everything that's happened with China's economy this year. His increased positions in JD and Alibaba could be a sign that he believes in their recovery, especially with the Chinese government's recent policy shifts. But the fact that he's hedging with those puts shows he’s not blindly optimistic—he knows the risks are still real.

 

 

Burry’s position in these stocks is now almost 65% of his entire portfolio. That’s a huge bet, and it tells me he’s really seeing something here, even if it’s not an all-in bet. He added 250,000 shares of JD and raised his Alibaba stake by 45,000 shares. He's clearly confident, but those put options he holds—over 500,000 ADR contracts for JD, over 160,000 for Alibaba—tell me he’s not taking any chances on a sudden dip.

 

His confidence in China’s rebound might also be shared by other investors like David Tepper, who have been looking at Chinese stocks as a value play despite the volatility.

 

But, with all this going on, I still can’t help but wonder: Is Burry seeing something the rest of us are missing, or is this just a calculated gamble? Either way, if he’s right, he could be on track for a serious win in the long run.

 

So, what do you all think? Do you see the potential in Chinese stocks, or do you think the risks still outweigh the rewards?