Michael Burry Expands Chinese Equity Holdings While Shorting US Tech

Investor Michael Burry expanded his investment in Chinese electric vehicle builder BYD Company Limited (OTC:BYDDF) while maintaining positions in Chinese firms such as JD.com, Inc. (NASDAQ:JD) and Tencent Holdings Ltd (OTC:TCEHY). At the same time, Burry placed bearish put options against the Nasdaq-100 and the VanEck Semiconductor ETF (NASDAQ:SMH). He bypassed Alibaba Group Holding Limited (NYSE:BABA) because the company issued stock to finance artificial intelligence infrastructure.

The move creates a sharp contrast between undervalued Hong Kong assets and heavily traded U.S. technology equities. Investors watching this strategy can look to broad exchange-traded funds like the iShares MSCI China ETF (NASDAQ:MCHI) or sector-focused funds, though none duplicate his exact portfolio. MCHI holds nearly $5.90 billion in net assets with a 0.59% expense ratio, but its net asset value total return fell 12.74% year-to-date through Oct. 1.

Going forward, market participants should assess whether Chinese equities can rebound despite persistent hurdles. Key factors to monitor include geopolitical tensions, economic hurdles, and regulatory conditions that continue to drive volatility across the region's equity markets.