Michael Burry
· Cassandra Unchained
· June 25, 2026 at 19:49
· ⏱ 1 min read
| Read on Substack ↗
Summary
The semiconductor-driven capital rotation out of Hong Kong into South Korea and Japan is exerting technical pressure on Chinese leading stocks, pushing them near their lows again. This is a technical, not fundamental, phenomenon linked to global chip mania, implying potential oversold conditions in Chinese equities but no reversal catalyst identified yet.
•Hong Kong stocks are falling as chip narrative diverts capital to South Korea (KOSPI) and Japan (TOPIX).
•Dedicated Asian stock funds can easily re-allocate, amplifying the technical rotation.
•Chinese leading companies are again being pushed near their lows due to this technical pressure.
•The author attributes the pressure to global semiconductor mania, characterizing it as largely technical rather than fundamental.