<p>Wall Street bear and the protagonist of the movie &#34;The Big Short,&#34; Michael Burry, rarely posted on social media last Friday to express optimism about Hong Kong stocks, stating that the Hang Seng TECH Index is significantly undervalued.</p>
<p>Michael Burry indicated that the stock prices of companies related to the Hang Seng TECH Index have fallen sharply in recent years, yet their revenues and profits continue to grow steadily. This extreme divergence between valuation and fundamentals presents a historic investment opportunity.</p>
<h2>The Biggest Risk Comes from the U.S. Government</h2>
<p>When asked about the biggest risk, Michael Burry replied that it is the U.S. government's comprehensive sanctions against the Chinese market, but he believes this will only occur in the event of large-scale military conflict. He also stated that China cannot take action against these companies, as it would greatly harm the economy, and that taking action against these companies between 2022 and 2024, despite the economic impact, has not resulted in severe losses for corporate businesses.</p>
<h2>Tencent Underperforms Compared to Netflix and Broadcom</h2>
<p>It is noteworthy that Michael Burry also discussed Hong Kong stocks at the end of February this year, pointing out that there are structural issues within the Hong Kong stock market. He explained that over the past 10 years, the revenues of Netflix, Broadcom, and Tencent (700) have grown by 4.5 to 5 times, but the returns have varied significantly, with Broadcom and Netflix consistently leading, while Tencent's return over the past five years has been almost exactly 0%.</p>
<p>He pointed out at that time that all major tech stocks in Hong Kong have become large since 2007, but &#34;the Hang Seng Index is currently around 27,000 points, still 15% lower than in 2007.&#34;</p>

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<p>Wall Street investor Michael Burry rarely expresses optimism about Hong Kong stocks, believing that the Hang Seng TECH Index is significantly undervalued. He pointed out that despite the substantial decline in the stock prices of related companies, their revenue and profits continue to grow steadily, creating an extreme valuation divergence that presents investment opportunities. Burry mentioned that the biggest risk is a comprehensive sanction by the U.S. government against the Chinese market, but he believes this situation would only occur in the event of military conflict. He also noted that Tencent's return over the past five years has been nearly 0, underperforming Netflix and Broadcom</p>

- Michael Burry, the inspiration behind the film "The Big Short," expressed optimism about Hong Kong stocks, arguing that the Hang Seng Tech Index is significantly undervalued.  
- He noted that despite substantial drops in stock prices, the revenues and profits of related companies have remained stable, creating a historic investment opportunity, though he highlighted potential risks from U.S. sanctions on China.  
- Burry previously mentioned structural issues in Hong Kong stocks, pointing out that while companies like Netflix and Broadcom saw substantial revenue growth, Tencent's returns have stagnated.

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Hang Seng TECH Index

TENCENT

Hang Seng Composite Index

Hang Seng Index

Tencent

Tencent Holdings Limited

Huatai-PB CSOP Hang Seng Technology ETF(QDII)

China Universal Hang Seng Technology ETF(QDII)

GF Fund Hang Seng Technology ETF(QDII)

E Fund Hang Seng Technology ETF(QDII)

China Southern Hang Seng TECH ETF(QDII)

CSOP HS TECH

Tianhong Hang Seng TECH ETF(QDII)

ChinaAMC Hang Seng Technology ETF(QDII)

Hang Seng TECH ETF I

ISHARESHSTECH

GX HS TECH

Dacheng Hang Seng Technology ETF(QDII)

CAM HS TECH

HSTECH ETF

Michael Burry rarely praises Hong Kong stocks, stating that the tech index is significantly undervalued and lamenting Tencent's zero returns over the past five years