'Big Short' Investor Michael Burry Turns Bearish On China: What's On His Short List Now

Michael Burry, famed for his highly profitable bet against the U.S. housing market in 2008, has recently shifted to a bearish stance on Chinese technology stocks.

Burry’s pivot is notable because he was previously bullish on China tech companies and held significant long positions in companies like Alibaba Group Holdings, Ltd. BABA and JD.Com, Inc. JD as recently as late 2024. 

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However, the latest SEC filings show a marked reversal: Burry’s hedge fund, Scion Asset Management,  acquired put options against several major Chinese tech companies. 

The Details: In the first quarter of 2025, Burry completely liquidated his previous positions in Alibaba, JD.Com, Baidu Inc. BIDU and PDD Holdings Inc – ADR PDD and purchased put options on each of the Chinese tech names. 

Burry’s bearish pivot on China came in the quarter before the announcement of new tariffs on Chinese goods by President Donald Trump, which heightened trade tensions and roiled global markets. The timing suggests the experienced investor anticipated increased volatility or downside risk in Chinese equities amid geopolitical and economic uncertainty. 

Scion also purchased a sizable amount of put options on NVIDIA Corp NVDA in the first quarter, which now makes up nearly half of its portfolio. 

The hedge fund’s only long position in the most recent quarter’s filing was Estee Lauder Companies, Inc. EL. 

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