For the protagonist of the movie 'The Big Short', hedge fund manager Michael Burry, the soaring of the Chinese stock market this week is a joy.

Starting from the fourth quarter of 2022, Burry has been buying Chinese stocks in a big way, and now he is reaping the rewards.

According to the form 13f, Burry's Scion Asset Management company manages about 0.2 billion US dollars, with about half of his investment portfolio invested in Chinese technology giants.

In his investment portfolio, the holding of Alibaba accounts for the largest proportion, reaching 21%. Until the second quarter of this year, he was still buying Alibaba's stocks, increasing his holding by 24%.

12% of Burry's investment portfolio is invested in Baidu, and another 12% is invested in jd.com. As of June 30, around 46% of Burry's investment portfolio is invested in these three Chinese stocks.

After China announced significant stimulus policies, these three stocks have all seen substantial increases this week.

China's central bank announced interest rate cuts, reduced bank reserve requirements to stimulate loans, and stated plans to provide liquidity support for the stock market. Policymakers also encouraged companies to start stock buybacks.

All these measures and the mild remarks of policy makers have led to a sharp rise in the Chinese stock market this week.

The iShares MSCI China A ETF has risen 18% so far this week. Meanwhile, Alibaba, Baidu, and JD.com have seen increases of 19%, 18%, and 32% respectively.

According to HedgeFollow data tracking and compiling 13F filing data, the recent surge in the Chinese stock market should mean that Burry's investment portfolio, with Alibaba as the largest holding, has also seen significant growth.

HedgeFollow estimates that Burry's average cost per share of Alibaba stock is $78.83. By Thursday afternoon, Alibaba's stock price reached $105.25, an estimated increase of 34%.

This assumes that Burry has not sold any shares since submitting the last 13F filing by Scion on June 30.

Burry is not the only hedge fund manager profiting from the recent surge in the Chinese stock market.

Billionaire investor David Tepper said on Thursday that now is the time to buy 'everything' Chinese assets.

Like Burry, Tepper also considers Alibaba to be the largest position in his hedge fund, accounting for about 12% of his $6.2 billion Appaloosa fund. Tepper believes that due to low valuations, there is still more upside potential in the Chinese stock market.

Tapie said in an interview on Thursday: "Even with the recent fluctuations, they are like at a low point compared to the past. The PE ratio is only one time, and the growth rate of large stocks traded here reaches double digits."