Michael Burry, Farallon Capital, Coatue Management Bet Big On China Stocks In Q4 As Country Came Out Of Zero-COVID

Latest 13F filings show that "The Big Short" investor Michael Burry, Farallon Capital Management, and Coatue Management increased their stakes in Chinese companies during the fourth quarter. Reuters had first reported this story.

What Happened: Burry's Scion Asset Management added 50,000 fresh positions in Alibaba Group Holding Ltd (NYSE:BABA) while it bought 75,000 shares of JD.Com Inc. (NASDAQ:JD) during the fourth quarter, the fund's latest 13 F filing show.

Also Read: How To Buy Alibaba (BABA) Stock

Alibaba shares have gained over 13% since the beginning of the year while JD.com has lost over 10% during the period.

Farallon Capital Management, too, added 2,197,000 shares of Alibaba during the quarter, and the valuation of its holdings stands at over $234 million, according to the filing.

China Policy: The moves follow China’s reopening which has led to record inflows into emerging market equities, reported Reuters, citing data from Bank of America Global Research. This has helped boost assets ranging from crude oil to European luxury goods in expectation of a re-emergence of demand, the report said.

China commenced steps to end its zero-COVID policy — which was among the world’s harshest anti-coronavirus regimes — in December while it officially reopened its borders in early January.

Coatue Management, meanwhile, has added over 4.7 million shares of Alibaba in the quarter while it added over 1.2 million shares of JD.com during the period.

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