STOCKS | Michael Burry Adds JD.com Calls and BYD Shares

Michael Burry, the investor whose story inspired the film *The Big Short*, disclosed that he had increased his JD.com call options and bought more BYD shares. According to Sina Finance, Burry said on November 2 that he had added to JD.com call options expiring in 2029 and purchased more BYD stock. He said JD.com had about $24.3 billion in net cash, equal to 71% of its market capitalization, and that after accounting for the cash, its operating business was valued at about three times owner earnings. Burry had also disclosed the positions in a portfolio update on Substack in early October, describing BYD as a “deeply undervalued, low-cost global manufacturing leader.” The latest position information showed JD.com as a sizable holding and BYD as a medium-sized one. In a November 3 report, Morningstar said Chinese chipmakers were benefiting from increased AI capital spending, while internet platforms stood to be the long-term beneficiaries. It named Tencent and Alibaba as top picks, saying their existing businesses supported earnings and that AI could also benefit their internet, advertising, and gaming businesses. A foreign institution investment head in Shanghai said the latest A-share volatility reflected sentiment spillovers from global technology stocks and temporary effects from the structure of domestic funds. J.P. Morgan Asset Management said A-shares had entered an attractive range for long-term allocation, with room for valuation recovery. It added that mid-November would bring a busy period for domestic and overseas macroeconomic events, and that medium-term investors might enter in stages as uncertainties became clearer.