Finboldยท2024-10-08 15:12Market Overview - In late September 2024, Chinese stocks experienced a surge due to a government announcement of a substantial package aimed at revitalizing the market [1] - However, on October 8, 2024, the situation reversed sharply as the government's new announcement failed to deliver the anticipated support, with only 100 billion Yuan (~$14 billion) allocated from the 2025 budget for short-term use, significantly less than the expected $100 billion [1] - This announcement had a pronounced negative impact, particularly in the Hong Kong market, where the benchmark HSI index fell by 9% [1] Alibaba Stock Performance - Alibaba's stock saw a significant decline of approximately 6.6% in the early hours of trading on October 8, 2024, following a strong rally that had previously increased its value by 34.83% over the past 30 days [2] - The stock price was around $109.7 at approximately 11 AM EST on October 8, which was $8 lower than the previous day's close [2] Michael Burry's Position - Despite the recent drop in Alibaba's stock price, Michael Burry remains profitable on his investment, as he purchased 155,000 shares during a downturn between summer 2023 and September 2024, at prices ranging from $66 to $88 [3] - Burry could potentially be up to 65% in profit despite the stock's decline on October 8 [3] - The optimism that had driven the stock rally was largely based on expectations of extensive government stimulus, which now appears to be in doubt following the latest announcement [3]