Investor Michael Burry disclosed on Wednesday that he increased his JD.com position to $27.58, making it one of his top three holdings. He stated his belief that the unwinding of AI and memory stock mania in South Korea and Japan will benefit Hong Kong and Chinese stocks. On Wednesday, Chinese media outlet Jiemian reported that Alibaba disclosed narrowing losses in its instant-commerce business in the June quarter while overall profitability held steady. Burry's comments come as Chinese tech stocks stage a modest rebound in July after months of sustained declines driven by concerns over heavy spending on quick commerce initiatives, weak consumer demand, and the broader slowdown in China's economy.
Burry Increases JD Position and Cites AI-Memory Unwind Thesis
"The Big Short" investor Michael Burry disclosed on Wednesday that he bought more JD shares. "I also bought more JD at $27.58. This is one of my top three positions," Burry wrote in a Substack trading update. "I believe the unwinding of the AI/memory mania in South Korea and Japan will benefit Hong Kong/Chinese stocks."
JD.com's stock fell 0.3% in early premarket trading following Burry's disclosure, while Alibaba Group shares rose.
Alibaba Narrows Instant-Commerce Losses in June Quarter
BABA stock rose 11% on Wednesday after a report in the local media outlet Jiemian said that the company disclosed narrowing losses in its instant-commerce business in the June quarter while overall profitability held steady. The company has yet to set the date for its fiscal first-quarter results announcement.
Hong Kong Market Climbs Nearly 6% This Month
Hong Kong's Hang Seng has climbed nearly 6% so far this month. Chinese technology companies account for roughly 35% to 40% of the Hang Seng Index by weight.
Apple supplier Luxshare Precision went public in Hong Kong on Thursday, after raising $3.09 billion in the city's biggest IPO this year.
Stocktwits Sentiment Shifts to Extremely Bullish for Alibaba
On Stocktwits, retail sentiment for BABA shifted to 'extremely bullish' early Thursday from 'bullish' the previous day, while the sentiment for JD remained 'bullish.'
"$BABA Alibaba stock is rallying as its pre-earnings briefing signals AI momentum and improving core business efficiency. China might be picking back up! Other Chinese names bullish today: $JD $BIDU," a trader wrote.
BABA stock is down 25% year-to-date, while JD shares are down 0.3%.
FAQ
What did Michael Burry disclose about his JD.com position on Wednesday?
Michael Burry disclosed on Wednesday that he bought more JD shares at $27.58, making it one of his top three positions. He stated in a Substack trading update that he believes the unwinding of AI and memory mania in South Korea and Japan will benefit Hong Kong and Chinese stocks.
What did Alibaba disclose about its instant-commerce business in the June quarter?
On Wednesday, Chinese media outlet Jiemian reported that Alibaba disclosed narrowing losses in its instant-commerce business in the June quarter while overall profitability held steady. BABA stock rose 11% on Wednesday following this report.
How has the Hong Kong Hang Seng Index performed this month?
Hong Kong's Hang Seng has climbed nearly 6% so far this month. Chinese technology companies account for roughly 35% to 40% of the Hang Seng Index by weight.
