Michael Burry (Trades, Portfolio), known for his contrarian investment strategies, has reaped significant gains from his timely investments in Chinese assets. Scion, his investment firm, disclosed that nearly half of its asset portfolio is allocated to Chinese stocks, with Alibaba (BABA, Financial) being its largest holding.
Burry's investment strategy has been rewarded as Chinese stocks have seen substantial gains. Alibaba's (BABA, Financial) stock price has surged over 50% since the beginning of the second half of the year.
David Tepper (Trades, Portfolio), another prominent Wall Street figure, has also been bullish on Chinese assets. Managing a $6 billion hedge fund, Appaloosa Management, Tepper holds Alibaba (BABA, Financial) as his largest position, comprising 12% of his portfolio.
International investors have shown increased interest in Chinese markets following favorable policy announcements. Notably, the KraneShares China Internet ETF (KWEB) recorded a $199 million net inflow over a week, marking its highest since March 2023. The ETF's assets have grown 76% since the end of August.
Analysts expect the uptrend in A-shares to continue, aided by supportive policies in real estate, consumption, and stock markets. As the Federal Reserve shifts towards a rate-cutting cycle, investments are anticipated to flow into emerging markets, with Chinese markets poised to outperform their developed counterparts.
