Michael Burry's article explains well why the valuation of Hong Kong stocks, especially that of Hengke, can be so low. To be fair, the companies within Hengke basically represent the top-tier, most profitable companies in the country. However, the long-term low valuation compared to other markets cannot simply be attributed to the fact that overseas investors do not like Chinese stocks; that is a one-sided view. From Michael Burry's analysis, we can see some reasons that domestic investors have overlooked. 1⃣ VIE structure: Due to regulatory restrictions, internet giants can only use the VIE structure to go public in Hong Kong. Overseas investors view this structure as being in a gray area, which could be subject to regulatory shutdown at any time. (This is a systemic risk that we do not need to consider, but for foreign investors, they can choose not to bear this risk.) 2⃣ The incident at the Bund Financial Forum involving Jack Ma: I originally thought this incident had a significant enough impact on the entire domestic capital market, but I still underestimated its influence. This incident, along with a series of subsequent regulatory crackdowns, has made U.S. investors wary of Hong Kong stocks. 3⃣ Still regarding Jack Ma, the fact that he spun off Alipay from Alibaba had a significant impact on institutions like Burry's in the U.S. It led to deep skepticism about all companies with VIE structures and opaque financial disclosures (an example he cited is Pinduoduo).