‘The Big Short’ investor Michael Burry has revealed a major change to his Chinese stock portfolio, fully exiting Alibaba (NYSE: BABA) and significantly increasing his position in JD.com (NASDAQ: JD).
Burry, best known for predicting the 2008 housing market collapse, disclosed the move through his Cassandra Unchained Substack after Alibaba announced plans to raise about $10.2 billion through the sale of 710 million Hong Kong-listed shares to fund its artificial intelligence expansion.
According to Burry, he transferred his entire Alibaba position into JD.com before the fundraising announcement. While he initially intended to rotate most of the capital back into Alibaba within a few months, he has since abandoned that plan and indicated he would only reconsider the stock at substantially lower prices.
The comments came as Alibaba shares fell nearly 10% in Hong Kong following the capital raise announcement, extending a difficult year for the company. Alibaba’s U.S.-listed shares are down more than 18% year-to-date.
Burry’s shifting portfolio
Burry’s latest portfolio update marks the culmination of a shift that began earlier in 2026. In June, he disclosed that he had sold Alibaba shares and used the proceeds to purchase additional JD.com stock at around $24.79 per share.
At the time, he argued that weakness across Chinese equities was largely driven by capital flows tied to the global semiconductor boom rather than deteriorating business fundamentals.
Despite criticizing Alibaba’s fundraising strategy, Burry acknowledged the company’s advances in artificial intelligence and large language models. However, he remains more bullish on JD.com and the broader Chinese e-commerce sector.
He expects intense competition among Chinese online retailers and delivery platforms to eventually ease, paving the way for stronger profit margins across the industry, a trend that could benefit JD.com and other major Chinese tech stocks.
Burry’s long bet on Chinese tech sector
Notably, Burry has been one of the most prominent U.S. investors backing Chinese technology companies in recent years.
Between late 2022 and 2024, Alibaba, JD.com, and Baidu accounted for a significant share of Scion Asset Management’s reported equity holdings.
While he reduced exposure to several Chinese names in late 2024 and added bearish options positions during escalating U.S.-China trade tensions in early 2025, he later rebuilt selective exposure.
His most recent moves included re-entering Alibaba in April 2026 before ultimately rotating the position entirely into JD.com.
After shutting down Scion Asset Management in late 2025 and returning investor capital, Burry began managing his investments privately and now discloses portfolio changes through Substack rather than quarterly 13F filings.
Meanwhile, he continues to maintain significant bearish bets against AI and semiconductor-related stocks, including Nvidia (NASDAQ: NVDA), Palantir (NASDAQ: PLTR), Oracle (NASDAQ: ORCL), Micron Technology (NASDAQ: MU), and the iShares Semiconductor ETF.
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