Free daily briefing on global business news.
The investor said Alibaba stock would need to fall by half for him to become interested again, calling out the company's share issuance
NurPhoto / Getty Images
Michael Burry moved his entire Alibaba Group Holding Ltd. position into rival JD.com Inc. before Alibaba closed a $10.2 billion Hong Kong share offering over the weekend, and the investor is not warming to the deal. "I cannot bless share issuances," Michael Burry wrote on X $TWTR, adding that Alibaba stock would need to fall by half for him to consider buying back in, according to Bloomberg.
The sharp decline before the announcement drew scrutiny in Hong Kong finance circles, where questions about the integrity of so-called wall-crossing arrangements — in which institutional investors agree not to trade after receiving confidential information about a planned deal — are already in focus. Sengantii Capital Management and its founder, Simon Sadler, are currently standing trial on charges that they used confidential information about a 2017 placement to execute trades in fashion retailer Esprit Holdings Ltd., a case that has sharpened focus on the issue. Both have pleaded not guilty.
