Billionaire investor David Tepper (Trades, Portfolio) has shown increased confidence in China's economy by boosting his holdings in Chinese-related stocks and exchange-traded funds (ETFs). Tepper, founder and president of Appaloosa Management LP, made headlines last September by advocating for investments in Chinese assets.
According to a recent filing, Appaloosa Management increased its stake in Chinese e-commerce company JD.com by approximately 43% in the last quarter to 10.5 million shares, valued at over $400 million based on current prices. Additionally, the hedge fund raised its holdings in another e-commerce giant, Alibaba Group (BABA, Financial), by 18%. Alibaba remains the fund's largest position, constituting about 16% of its $6.4 billion portfolio.
Tepper also expanded his exposure to the KranShares CSI China Internet ETF (KWEB) and the iShares China Large-Cap ETF (FXI), as well as to KE Holdings Inc. and Baidu. By the end of last year, Chinese stocks and ETFs accounted for approximately 37% of Tepper's portfolio by market value, showing little change from the previous quarter.
At the start of this year, the foundation of China's stock market has strengthened, with some Chinese indices outperforming those in the U.S. and Europe. This is partly due to China's growing influence in artificial intelligence, bolstered by successful AI models from companies like DeepSeek. Alibaba is also developing its own AI model, contributing to its stock price rising nearly 30% since the beginning of the year.
