Michael Burry Sees Hong Kong Stocks as Buy Opportunity Amid Market Lag

Michael Burry on Friday posted on X that now is a good time to focus on cheap Hong Kong stocks, as the city's market has lagged in this year's global AI rally. The Scion Asset Management founder stated that Hong Kong stocks should perform well as the shine fades from Korean stocks, Japanese stocks, and SOXX. His comments come amid an intensifying global chip stock selloff, with investors questioning whether AI companies' technology and high spending will deliver returns. Hong Kong's Hang Seng Index has fallen 4.9% this year due to weak consumer spending and diminished confidence in China's e-commerce sector.

Burry Increased JD.com Holdings Earlier This Month

Burry added to his JD.com position earlier this month, according to the source. His latest remarks follow this recent move to increase exposure to the Chinese e-commerce company.

Hong Kong Stocks Trail Global Markets in 2026

The Hang Seng Index has dropped 4.9% this year, contrasting sharply with other Asian markets. South Korea's benchmark stock index has surged 62%, driven primarily by gains in the country's two major chip giants. Japan's Nikkei 225 has risen 26% since the beginning of 2026, while the iShares Semiconductor ETF (ticker: SOXX) has climbed 76%.

Morgan Stanley Recommends Overweighting Hong Kong Stocks

Morgan Stanley has advised investors to increase their holdings in Hong Kong stocks, with the recommendation partly driven by optimistic earnings sentiment. The growing list of investors favoring Hong Kong equities now includes both Burry and the major investment bank.

FAQ

What did Michael Burry say about Hong Kong stocks on Friday? Michael Burry posted on X on Friday that now is a good time to focus on cheap Hong Kong stocks, stating they should perform well as the shine fades from Korean stocks, Japanese stocks, and SOXX.

How has the Hang Seng Index performed this year? The Hang Seng Index has fallen 4.9% this year, with market sentiment affected by weak consumer spending and diminished confidence in China's e-commerce sector.

What other markets did Burry compare to Hong Kong stocks? Burry referenced South Korea's benchmark stock index (up 62%), Japan's Nikkei 225 (up 26% since the beginning of 2026), and the iShares Semiconductor ETF with ticker SOXX (up 76%).