Burry Calls Hong Kong Stocks a "Bargain Opportunity"
0xBroomberg
Michael Burry — the investor behind *The Big Short* — says now is an "especially good time" to find undervalued Hong Kong stocks, arguing that capital will rotate toward cheaper markets as the shine fades on Korea, Japan, and semiconductor ETFs.
What exactly did Burry say?
Burry posted on X: "Now is an especially good time to find cheap stocks in Hong Kong."
His logic is straightforward — Korea, Japan, and the SOXX semiconductor ETF are losing their glow, making Hong Kong relatively more attractive.
He backed the words with money: earlier this month he disclosed increasing his stake in JD.com, the Chinese e-commerce giant.
Why does he think Hong Kong is "cheap"?
The gap is stark: the Hang Seng Index is down 4.9% year-to-date, while Korea's benchmark is up 62%, Japan's Nikkei 225 is up 26%, and the iShares SOXX ETF is up 76%.
This means → a massive valuation gap has opened between Hong Kong and these "star markets," and Burry is betting that gap narrows.
In plain terms = the others have rallied hard while Hong Kong stayed flat. If those overheated markets cool off, capital may flow back to wherever is cheapest.
Why might those "star markets" cool off?
Korea's and Japan's gains were driven largely by chip giants; SOXX is a pure semiconductor ETF — all deeply tied to the AI narrative.
But doubts are growing: can AI companies actually monetize the technology? Is the massive capital spending justified?
This reflects a deeper signal: when a thematic trade (AI/chips) enters the "starting to question" phase, previously ignored markets can get repriced upward.
Is Burry the only one saying this?
No. Morgan Stanley recently made a similar call, urging investors to accumulate Hong Kong stocks on dips, partly on optimistic earnings expectations.
Burry's voice amplifies the bullish case — when an investor famous for contrarian bets picks a side, the signal carries weight.
Can Hong Kong stocks actually recover?
The drags have not disappeared: weak consumer spending and fading confidence in the e-commerce sector remain two heavy anchors.
This means → even if external capital wants in, Hong Kong's own fundamentals need to cooperate — the key is whether Chinese consumption data shows real improvement.
In plain terms = Burry is betting on a "rotation from the overheated to the undervalued" script. Whether it plays out depends on two things — the pace at which the AI trade cools, and the speed of China's own economic recovery. Both conditions must hold.
Content is for reference only, not financial advice.