Big Short Michael Burry says now is the time to buy Hong Kong stocks—while the Japan–Korea and semiconductor hype has faded, move in quickly at the bottom

《The Big Short》prototype figure and Scion Asset Management founder Michael Burry said that as the halo around the Korean and Japanese stock markets and the SOXX semiconductor sector gradually fades, it is now an excellent time to shift to the Hong Kong stock market and look for undervalued targets. He believes that after capital pulls out of Korea, Japan, and semiconductors, some Hong Kong stocks with low valuations may be able to ride a good run. What’s particularly intriguing is that behind these remarks lies his clear stance of simultaneously adding to his shorts on NVIDIA and SOXX.
(Background: The Big Short’s Michael Burry increases his short positions on NVIDIA and Tesla: Korean chips are the “beginning of the end” for AI)
(Additional context: Burry warns that the Nasdaq’s P/E ratio of 43 is a “bet on semiconductors falling 30%”: like the minutes before a car crash, .com bubble about to come)

Key Takeaways

• Michael Burry is urging investors to take advantage of the fading halo over Korea, Japan, and SOXX semiconductors, and now is a good time to scoop up undervalued stocks in Hong Kong.
• He also reveals that he is shorting NVIDIA, Applied Materials, and SOXX, believing that the semiconductor rally is like the dot-com bubble in 2000, with the cycle nearing its peak.
• Burry has increased his stake in JD.com (JD.com) to $27.58 per share, betting that funds will flow back into Hong Kong stocks and Chinese stocks.

For those shorting semiconductors, turning around to run to Hong Kong to find bargains—according to Bloomberg, Michael Burry, the investor known for precisely targeting the 2008 subprime crisis and the prototype character for the movie The Big Short, is now setting his sights on Hong Kong’s stock market, which has clearly lagged during this global AI boom.

Now is a particularly good time—when the halo over Korea, Japan, and SOXX fades, go to Hong Kong to find those cheap stocks that should perform well.

Short semiconductors, bullish on Hong Kong stocks

Burry’s logic is built on a judgment: the semiconductor rally fueled by large-scale chip investments in South Korea has already become valued as high as the dot-com bubble in 2000—an indication that the cycle is topping, not something just beginning. He recently disclosed his short positions in NVIDIA, Applied Materials, and the iShares semiconductor ETF (SOXX), and his stance is quite clear.

In his view, once the AI and memory frenzy in South Korea and Japan cools down, the Hong Kong and China stocks left on the sidelines may instead become the destination for capital to flow back in. “Lagging” in his eyes is precisely a good time to scoop up.

Add to JD.com

Burry isn’t just talking. He has already increased his stake in JD.com to $27.58 per share, putting it among his top three holdings. The reason is that he expects that after the Korea-Japan AI memory boom cools off, funds will flow back to Hong Kong stocks and China tech stocks.

This is not investment advice.

Common Questions

Why does Michael Burry like the Hong Kong stock market?

He believes Hong Kong’s stock market has clearly lagged during this year’s global AI boom and has low valuations. After capital retreats from Korea, Japan, and the semiconductor sector, these undervalued Hong Kong stocks may be able to absorb the returning funds and deliver a strong run.

Isn’t it contradictory for Burry to short at the same time he scoops up Hong Kong stocks?

It’s not contradictory—this is the same logic of capital rotation. He believes the AI boom in Korea, Japan, and semiconductors has already peaked and that capital will withdraw; meanwhile, the lagging Hong Kong stocks have low valuations and will be able to absorb the returning funds. Shorting overvalued targets and buying undervalued ones are two sides of the same coin.