China move from Big Short: DeepSeek rally not expected

It has been revealed that Michael Burry, also known as the Big Short, sold shares of Chinese companies before the artificial intelligence rally. Burry, famous for predicting the 2008 housing crash in the US and gaining fame with the Big Short movie, was found to have partially withdrawn investments before the artificial intelligence rally. Along with DeepSeek’s breakthrough in artificial intelligence, there was a $1.3 trillion influx in the shares of Chinese companies. According to regulatory filings released on Friday, famous investor Burry reduced risks in JD.com and Alibaba Group Holding shares by the end of last year. Burry’s portfolio update occurred before the DeepSeek rally. Burry’s investment firm, Scion Asset Management, reduced its holdings in JD.com by 40% and Alibaba shares by 25% in the fourth quarter. Despite these recent moves, Chinese technology companies like JD.com, Alibaba, and Baidu remained among the largest assets in Burry’s portfolio. Scion did not reduce its holdings in all its investments in China. It opened a new position in PDD Holdings, a competitor of Alibaba in China’s e-commerce sector, with 75,000 shares. There were no changes made in the holdings of Baidu shares.