Alibaba Group (NYSE:BABA) shares jumped over 7% yesterday after Michael Burry's investment firm significantly increased its stake in the e-commerce giant and other Chinese companies. Scion Asset Management, Burry's firm, expanded its holdings in Alibaba and JD.com, as indicated by a recent 13-F filing. Scion raised its stake in JD by 80%, and Alibaba became the fund's second-largest holding with an additional 50,000 shares, bringing the total to 125,000 shares worth about $9 million.

Burry, renowned for predicting and profiting from the 2008 U.S. housing crisis, has been investing in heavily discounted Chinese tech stocks over the past year, anticipating a rebound as the Chinese economy recovers post-COVID. Despite the struggles of Chinese stocks in 2023, Burry's investments are yielding positive returns in 2024.