Key Takeaways
- Michael Burry identifies Hong Kong as prime hunting ground for undervalued tech stocks
- The Hang Seng Index has declined roughly 5% this year as AI-focused markets soared
- Major Chinese tech names have suffered: Alibaba down 25%, Tencent down 26%, Baidu off 14%, NetEase down 11%
- Burry’s Scion Asset Management has been actively adding to its JD.com position
- Meanwhile, South Korea’s market surged 58% and semiconductor ETFs climbed 76% in the same period
Michael Burry, the legendary investor who famously forecasted the 2008 financial crisis, is now highlighting Hong Kong’s tech sector as a compelling value play.
In a post on X earlier this week, Burry declared that “it is a particularly good time to look to Hong Kong for cheap stocks.” He suggested these equities “should do well as the shine comes off Korea, Japan & the Soxx.”
These remarks followed closely on the heels of his warning that “the end is nigh” for the artificial intelligence investment boom.
Hong Kong’s Tech Sector Falls Behind Global Rally
The Hang Seng Index has shed approximately 4.9% year-to-date. Sluggish consumer demand and decelerating momentum in China’s online retail industry have pressured the benchmark.
This performance contrasts dramatically with international markets benefiting from AI enthusiasm. South Korea’s primary stock index has climbed 58% this year, propelled by strong performance from Samsung Electronics and SK Hynix.
Japan’s Nikkei 225 has advanced approximately 24% since 2026 began. The iShares Semiconductor ETF has rocketed roughly 76% higher.
Conversely, prominent Hong Kong-listed technology companies have experienced significant declines.
Alibaba stock has tumbled about 25% year-to-date. Tencent shares have dropped 26%, Baidu has declined 14%, and NetEase has surrendered around 11%.
Burry Puts Money Behind His Conviction With JD.com
Burry isn’t merely offering commentary from the sidelines. Earlier this month, his investment vehicle Scion Asset Management expanded its holdings in JD.com, a major Chinese e-commerce platform with Hong Kong listing.
JD.com has faced similar headwinds this year, tracking closely with other beaten-down Chinese tech names.
Burry’s thesis centers on the valuation disparity created between AI darlings and Hong Kong tech companies. As market participants crowded into semiconductor and artificial intelligence stocks, numerous Chinese technology firms were abandoned at depressed valuations.
His perspective isn’t isolated. Morgan Stanley recently advised clients to accumulate Hong Kong equities, pointing to anticipated improvements in corporate profitability.
Additional major players in the Hang Seng’s technology segment include Lenovo, which has similarly lagged behind global AI-focused competitors throughout the year.
Burry’s investment case rests on the expectation that money will ultimately shift away from elevated AI market valuations toward more attractively priced, neglected opportunities.
Whether such a rotation materializes is uncertain, though the valuation disconnect between Hong Kong tech and AI-related markets is substantial and widely recognized.
As of July 17, 2026, the Hang Seng’s technology leaders remain significantly cheaper than their international peers.
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