Michael Burry flags Hong Kong stocks as low-priced opportunity

The investor said interest may shift toward Hong Kong shares as enthusiasm for South Korea, Japan and the SOXX semiconductor sector fades, after earlier disclosing a larger JD.com position.

Summary

Michael Burry said Hong Kong stocks offer low-priced opportunities, highlighting lower-valued shares that could benefit if capital rotates away from South Korea, Japan and the SOXX semiconductor sector. Earlier this month, he said he had increased his JD.com position. Morgan Stanley has also recommended overweighting Hong Kong equities, citing earnings prospects in part. The comments point to a potential rotation trade, where investors move from recently favored markets or sectors into areas seen as cheaper or less crowded.

Terms & Concepts
  • SOXX semiconductor sector: A reference to semiconductor stocks associated with the iShares Semiconductor ETF, often used as a proxy for investor exposure to chipmakers.
  • overweighting: Allocating more to an asset than a benchmark does.