Michael Burry Is Betting Big on Hong Kong Stocks. Why He Likes JD.com Shares Here.

When Michael Burry makes a move, Wall Street rarely shrugs it off. The investor who famously predicted the 2008 U.S. housing market collapse – later immortalized in The Big Short – has built a reputation for spotting opportunities long before the crowd catches on. So, when he starts buying a stock and doubles down on a broader investment theme, investors naturally start asking what he sees that everyone else might be missing.

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Burry disclosed that he had added to his position in Chinese e-commerce giant JD.com (JD). Then he went a step further, telling investors that now is "a particularly good time" to hunt for bargains in Hong Kong stocks, arguing that the spotlight could gradually shift away from the markets that have dominated this year's AI-fueled rally.

It's a timely call. While South Korea's chip-heavy market ($KSI), Japan's Nikkei ($NKY), and semiconductor stocks have enjoyed massive gains as artificial intelligence (AI) enthusiasm swept global markets, Hong Kong has largely been left standing on the sidelines. The Hang Seng Index ($HSI) has struggled to keep pace with its global peers this year, weighed down by sluggish consumer spending, softer growth across China's e-commerce sector, and investors' growing preference for AI-driven winners over traditional Chinese equities.

Yet Burry has never been one to chase what everyone else already loves. Instead, he has built his career by buying what others overlook. That brings the focus squarely to JD.com, China's second-largest e-commerce company. Unlike many online marketplaces, JD operates much like Amazon (AMZN), owning its warehouses, logistics network, and supply chain – a capital-intensive model that delivers a more reliable customer experience and stronger long-term economics.

With Hong Kong equities creeping back onto institutional investors' radar and Burry putting fresh money behind JD, could this be the start of the stock's next leg higher? Let's unpack why he is betting on JD stock now.

Founded in 2006 and headquartered in Beijing, China, JD.com is a leading supply chain-focused technology and e-commerce company with a market capitalization of $38.2 billion. Beyond online retail, the company generates revenue through marketplace services, digital marketing, healthcare offerings, logistics, and technology-driven supply chain solutions.

It also operates one of China's largest logistics networks, serving both consumers and third-party businesses. As consumer spending gradually recovers, JD is increasingly focused on expanding its higher-margin service businesses and growing its international footprint to support long-term profitability and sustainable growth.

JD.com's shares are quietly regaining their footing after a volatile start to the year. The stock broke out to a fresh 2026 high in May following better-than-expected first-quarter earnings, before pulling back with the broader Chinese technology sector. Even after that retreat, JD has climbed about 24.1% from its early-March low of $24.51 and recently reclaimed the psychologically important $30 level, putting it within striking distance of its 2026 peak, although it still sits 12.7% below that high.

The recent momentum has been notable. Year-to-date (YTD), JD is up 5.9%, while the stock has gained 10.3% over the past month and 5.4% over the last five trading sessions alone.

The technical picture is also steady. JD's 20-day moving average has turned higher again as the recent rally gathered momentum, signaling improving short-term trend strength. The stock has reclaimed its 200-day moving average for the first time since May – often viewed as a sign that the longer- term trend is strengthening. Even so, the shares remain 36.7% below their late-2024 high, leaving room for further upside if momentum continues to build.

Adding to the bullish setup, JD's 14-day Relative Strength Index (RSI) has now climbed to 68.01, pushing the stock near overbought territory. While that reflects strong upward momentum and growing investor optimism, it also suggests the shares may be due for a period of consolidation or short-term profit-taking after their recent rally.

Valuation-wise, JD still looks inexpensive. The stock is priced at just 9.41 times forward adjusted price-to-earnings and 0.20 times forward sales, well below both its sector averages and its own historical median. If the company delivers on expectations for stronger revenue and earnings growth, that discount could become harder for the market to ignore.

And the appeal does not stop with its inexpensive valuation. JD.com also rewards shareholders with an annual dividend yielding 3.31%, backed by a healthy 55.58% payout ratio, offering a compelling mix of value, growth, and income.