Burry Called the Housing Crash — Now He Says Buy These Beaten-Down Hong Kong Tech Stocks

TLDR

• Michael Burry says it is “a particularly good time” to look for cheap stocks in Hong Kong
• The Hang Seng Index has fallen nearly 5% this year while global AI-driven markets surged
• Alibaba is down 25%, Tencent down 26%, Baidu down 14%, and NetEase down 11% year-to-date
• Burry recently increased his stake in JD.com through his firm Scion Asset Management
• South Korea’s index is up 58% and the iShares Semiconductor ETF has jumped 76% this year

---

Michael Burry, the investor best known for predicting the 2008 housing collapse, is now pointing to Hong Kong tech stocks as a buying opportunity.

Michael Burry said he thinks its worth trying to go “bargain hunting” in Hong Kong’s stock market after it lagged peers during the global AI rally this year

“It is a particularly good time to look to Hong Kong for cheap stocks that should do well as the shine comes off Korea,…

— Evan (@StockMKTNewz) July 17, 2026

Burry posted on X this week saying “it is a particularly good time to look to Hong Kong for cheap stocks.” He added that these stocks “should do well as the shine comes off Korea, Japan & the Soxx.”

His comments came just days after he warned that “the end is nigh” for the AI trade.

Why Hong Kong Has Been Left Behind

The Hang Seng Index has dropped about 4.9% so far this year. Weak consumer spending and slowing growth in China’s e-commerce sector have weighed on the market.

That drop stands in sharp contrast to global markets riding the AI wave. South Korea’s benchmark index is up 58% this year, driven by gains in Samsung Electronics and SK Hynix.

Japan’s Nikkei 225 has gained around 24% since the start of 2026. The iShares Semiconductor ETF has surged roughly 76%.

Meanwhile, several major Hong Kong-listed tech stocks have moved in the opposite direction.

Alibaba shares are down about 25% year-to-date. Tencent has fallen 26%, while Baidu is down 14% and NetEase has lost around 11%.

Burry Backs JD.com With Fresh Buying

Burry has not just been talking. Earlier this month, his firm Scion Asset Management increased its position in JD.com, a Chinese e-commerce company listed in Hong Kong.

JD.com has also remained under pressure this year alongside its peers.

Burry’s view is that the gap between AI winners and Hong Kong tech has created a valuation opportunity. While investors chased semiconductor and AI-linked stocks, many Chinese tech companies were left trading at lower prices.

He is not alone in this thinking. Morgan Stanley recently told investors to accumulate Hong Kong equities, citing expectations of stronger corporate earnings ahead.

Other major companies in the Hang Seng’s tech sector include Lenovo, which has also underperformed global AI-driven peers this year.

Burry’s call is based on the idea that capital will eventually rotate away from high-flying AI markets and into cheaper, overlooked stocks.

Whether that rotation happens remains to be seen, but the valuation gap between Hong Kong tech and AI-linked markets is real and well-documented.

As of July 17, 2026, the Hang Seng’s tech heavyweights continue to trade well below their global counterparts.