Investing.com – Hong Kong shares of Alibaba Group (HK:) (NYSE:) rose to a seven-month high on Friday after Michael Burry’s investment firm increased its stake in the e-commerce giant and several of its Chinese peers.
Alibaba Shares rose more than 7% to HK$85.80, their highest level since October 2023. The stock was the best performer on the index, rising 0.9%.
Burry’s Scion Asset Management increased its stake in Alibaba and rival JD.com (HK:) (NASDAQ:), with the latter becoming its largest holding in the first quarter, a 13-F filing showed earlier this week. Scion increased its stake in JD by 80%.
Alibaba was the fund’s second-largest holding, with Scion increasing its position in the e-commerce giant from 50,000 shares to 125,000 shares, worth about $9 million.
Burry, who famously predicted and shorted the US housing crisis in 2008, has been buying heavily discounted shares of Chinese technology companies over the past year, betting that the sector will rebound following the broader post-COVID recovery of the Chinese economy. .
While Chinese stocks crashed in 2023, Burry’s bet appears to be paying off in 2024. In 2024, Alibaba shares are trading up 14% and JD.com shares are up 21%.
The gains came even as Alibaba disappointed in its first-quarter earnings. JD, however, beat expectations with first-quarter earnings on Thursday.
However, the overall Chinese stock market has posted a strong rally over the past two months as global investors gradually warmed up to local stocks amid continued government support.
China was also seen last year scaling back its regulatory crusade against its internet giants as Beijing looked for every opportunity to boost growth.
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