The aura of an AI bull market is fading away! “Big Short” Bury proposes to lay out Hong Kong stocks: undervalued investment opportunities have surfaced

The Zhitong Finance App learned that the investor Michael Burry, famous for “The Big Short,” said that after falling behind other markets in the global artificial intelligence (AI) market this year, now is a good time for investors to look for undervalued investment opportunities in the Hong Kong stock market.

Since this year, Hong Kong's Hang Seng Index has declined by 4.9%, mainly affected by weak consumer spending and weakening market confidence in China's e-commerce industry. In contrast, driven by the sharp rise in the stock prices of South Korea's two major chipmakers, South Korea's benchmark stock index has risen 62% since the beginning of 2026; Japan's Nikkei 225 Index has risen 26% since the beginning of 2026; while iShares Semiconductor ETF (SOXX), which tracks the semiconductor sector, surged 76% over the same period.

Bury posted on social networking platform X on Friday: “As the aura of South Korea, Japan, and SOXX gradually fades away, now is a good time to go to the Hong Kong market to find stocks that are undervalued and are expected to perform well.” Barry also said earlier this month that he had increased his stock holdings in the Chinese e-commerce company JD.US (JD.US).

Bury is famous for successfully shorting the US real estate market before the 2008 global financial crisis broke out. His latest statement comes at a time when the global chip stock sell-off is further intensifying. As market questions about whether AI companies can commercialize their technology and return on high capital expenses continue to increase, investors' confidence in the AI industry chain has wavered.

At the same time, more and more institutions are beginning to be optimistic about the Hong Kong stock market. Morgan Stanley also recently advised investors to lay out Hong Kong stocks on dips. One reason is that the market remains optimistic about corporate profit prospects.