Michael Burry And Top Economist Agree: It's Time To Short China

Benzinga·06/12/2025 16:31:32

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Renowned investor Michael Burry recently liquidated his long positions in Chinese tech stocks—a move echoed by Apollo Global's top economist, who shares his bearish outlook on China's economy.

What To Know: On Wednesday, Apollo Global's chief economist Torsten Slok shared three reasons why he sees growth in China slowing over the next year.

In an email to investors, Slok pointed to continuing trade tensions with the U.S., China's collapsing housing market and demographic challenges—stemming from the lingering impacts of the one-child policy, which is reducing the working-age population.

What Else: In the first quarter of 2025, Burry's hedge fund, Scion Asset Management, acquired put options against several major Chinese tech companies.

The firm completely liquidated its long positions in Alibaba Group Holdings, Ltd. (NYSE:BABA) and JD.Com, Inc. (NASDAQ:JD), Baidu Inc. (NASDAQ:BIDU) and PDD Holdings Inc. (NASDAQ: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 move suggests the experienced investor agrees with Slok's view that volatility or downside risk in Chinese equities are set to increase amid geopolitical and economic uncertainty.

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