Hedge fund tycoon Tepper: Buy all China-related assets!

After China introduced comprehensive stimulus measures beyond expectations, American billionaire investor David Tepper spoke out, suggesting to "buy everything" related to Chinese assets.

Tepper, who founded Appaloosa Management in 1993, attributed his significant bet on Chinese assets to the large-scale stimulus measures announced by China this week. "I thought the Fed's actions last week would lead to China easing monetary policy, but I didn't expect their stimulus to be this strong," he said in an interview on Thursday.

In the second quarter of this year, his hedge fund held most of the shares of Chinese companies he bought earlier this year, despite reducing holdings in Alibaba Group and American tech giants.

Now, after China pledged to support fiscal spending, stabilize the real estate industry, and intensify efforts to boost economic growth, he has started buying Chinese stocks including Alibaba and Baidu.

"We hold Chinese stocks for a longer period of time and in larger quantities," he said, noting that even after this week's surge in stock prices, Chinese stocks are still undervalued, which is one of the reasons he is buying Chinese stocks.

Tepper is not the only one bullish on the Chinese stock market. Goldman Sachs' bulk brokerage business saw hedge funds aggressively buying Chinese stocks on Tuesday, while Morgan Stanley strategist led by Laura Wang expects the CSI 300 Index to rise another 10% in the near term.

Prior to the recent stock market rally, Tepper and Michael Burry of Scion Asset Management (protagonist of the movie "The Big Short") were among the few well-known hedge fund investors bullish on the Chinese stock market.

Tepper also mentioned that he has removed the barriers he set for himself in the Chinese stock market. "I have limits, historical limits. I may have said a long time ago, I won't go over 10% or 15%. Well, that may no longer be true," he said. However, Tepper stated that he will set "another new limit" during a pullback.

He expressed excitement about the swap mechanism announced by the Chinese central bank governor Pan Gongsheng, which allows securities, funds, and insurance companies to buy stocks through the central bank. "It's a good deal for me. I want to borrow something there," he said.

Tepper downplayed the complexity of geopolitics and the impact of tariffs. "I don't care," he said, "this is internal stimulus," and fiscal stimulus will encourage consumption