Michael Burry doubles down on beaten-down China tech

The antheral who predicted the 2008 lodging clang is making different contrarian call, and this clip his sights are acceptable connected China.

Hedge money manager Michael Burry, who became celebrated aft the movie "The Big Short" chronicled his stake against subprime mortgages, revealed connected Thursday, June 25, that helium added to his JD.com presumption astatine $24.79 per share. 

According to a StockTwits report, Burry besides bought Microsoft December 2028 LEAP calls and added to stakes successful Adobe and Fiserv.

But it's the China commercialized that is raising eyebrows.

Burry laid retired his reasoning successful a Substack post, arguing that the caller sell-off successful Chinese and Hong Kong stocks has precise small to bash with concern fundamentals.

Burry says China's sell-off is simply a method problem

Burry's halfway statement is that superior is simply rotating retired of Hong Kong and China for reasons unrelated to however these businesses are performing.

"Hong Kong stocks are falling hard arsenic the spot communicative pulls superior from Hong Kong and pushes it into South Korea and Japan," helium wrote successful his Substack post. 

Momentum traders and ample Asian-focused funds are reallocating quickly, helium explained, making the determination much self-reinforcing than it is fundamentally driven.

Fund manager buys and sells:

• Warren Buffett's Berkshire triples involvement successful paper giant

• Cathie Wood sells $16M of surging semiconductor stock

• Bill Ackman discloses caller $2.09 cardinal involvement successful megacap tech stock

China's starring companies person been "pushed down adjacent their lows again," arsenic Burry enactment it. His decision was blunt: this is "largely method pressure, not fundamental."

Burry besides sold Alibaba chiefly for tax-loss purposes and reallocated the proceeds to JD.com.

He noted that helium whitethorn yet bargain backmost Alibaba and is besides watching Meituan and Tencent.

JD.com conscionable posted a grounds quarterly profit

Burry's timing is absorbing due to the fact that JD.com conscionable wrapped up a beardown archetypal quarter.

Total revenues grew 4.9% twelvemonth implicit twelvemonth (YoY) to astir 316 cardinal yuan ($46.5 billion) successful Q1 2026. 

More importantly, JD Retail's operating nett surged 16.5% YoY to 15 cardinal yuan ($2.21 billion), a grounds quarterly high, absorption said. The retail segment's operating borderline expanded to 5.6%, up 0.7 percent points YoY.

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Gross borderline astatine the retail level came successful astatine 18.6%, up 1.8 percent points YoY. That marks 16 consecutive quarters of year-over-year gross borderline improvement, CEO Sandy Xu said connected the call.

"This borderline uplift was further amplified by a favorable gross premix shift, peculiarly the accrued publication from high-margin streams specified arsenic advertizing and commissions," Xu explained.