Overseas funds are heavily betting on Chinese assets.

Previously, Michael Burry, the Wall Street famous fund manager who rose to fame by shorting during the 2008 US subprime mortgage crisis and was the prototype for the movie "The Big Short," has increased his investments in China.

On November 14th, Eastern Time, Michael Burry's hedge fund Scion (Scion Asset Management) released its Form 13F holdings report.

In the third quarter, the fund significantly increased its holdings of Chinese stocks such as Alibaba, JD.com, Baidu, while also hedging its bets.

Doubling down on Chinese concept stocks.

According to the 13F filing, in the third quarter of this year, Scion Fund's total holdings were approximately $0.13 billion, with the top ten holdings accounting for 99.13%.

In Q3 holdings, a total of 6 stocks were increased, 2 stocks were reduced, 3 stocks were newly added, and 2 stocks were cleared.

In the third quarter, Scion continued to significantly increase its holdings in alibaba, baidu, and jd.com, but at the same time allocated corresponding put options.

Among them, the largest increase was in jd.com, with a significant increase of 100%, an increase of 0.25 million shares, total holding reaching 0.5 million shares; at the same time holding corresponding 0.5 million put options.

The second largest increase was baidu, which increased by 66.67%, adding 0.05 million shares, total shares reaching 0.125 million shares, with a total value of 13.16125 million USD; holding corresponding 0.0833 million put options.

Increased holdings of alibaba by 29% to 0.2 million shares, valued at approximately 21 million USD; at the same time holding put options for nearly 0.169 million shares of alibaba, valued at around 18 million USD.

As of the end of September, the value of the three Chinese stocks held by Scion was 54 million USD, accounting for approximately 65% of the total stock holdings of the fund.

Currently, the top holdings of the fund are in the following order: alibaba 16.36%, jd.com 15.41%, shift4 payments inc 10.24%, baidu 10.14%, and molina healthcare inc 7.97%.

The industries with significant holdings are: consumer cyclical, technology, communications services, medical care, and financial services.

In addition, holdings were reduced in American Coastal Insurance Corp by 151,892 shares, The RealReal Inc by 500,000 shares; and liquidated in Hudson Pacific Properties Inc, BioAtla Inc.

Foreign enthusiasm is on the rise.

Since September 24, a series of incremental policies have been introduced, improving China's economic growth momentum and continuously unleashing vitality in the capital markets.

The latest Chinese economic data released today shows that the economic growth momentum strengthened in October.

Total retail sales of consumer goods in October reached 4,539.6 billion yuan, a year-on-year increase of 4.8%;
In October, the value added of industrial enterprises above a designated size nationwide increased by 5.3% year-on-year;
From January to October, the national fixed asset investment (excluding rural households) was 42,322.2 billion yuan, a year-on-year increase of 3.4%.
In October, the total import and export value of goods was 3,700.7 billion yuan, an increase of 4.6% year-on-year.

Recently, many foreign institutions have expressed optimistic expectations for the economic growth of China and have indicated bullish prospects for Chinese assets, leading to an upgrade in Chinese stock ratings.

Nomura recently raised its forecast for China's GDP growth in the fourth quarter and full year. Previously, UBS and JPMorgan had already raised their expectations for China's economic growth this year.

Bank of America's global fund manager monthly survey shows that "bullish on China" ranked among the top 3 in the most popular trades in October, with a high percentage of 14%. In addition, the proportion of global fund managers expecting a strengthening Chinese economy in the next 12 months has reached 48%.

"After the policy shift, growth expectations for China have become active again. Participants in the survey believe this time is different, so they have given up looking for opportunities elsewhere and turned their attention to China."

JPMorgan Asset Management released a quarterly overview of the global market, pointing out that the A-share market has transitioned from emotional recovery rebound to a fundamental-driven market phase.

The future recovery of corporate profits may be a key variable for the sustained market trend, suggesting investors focus on the 'core assets' of A-shares and leading companies with 'new productive forces' in various industries.