Some Investors Think Two Companies Will Lose Money

Jun 30, 2026, 20:41
ChinaFinance
A2

Some Investors Think Two Companies Will Lose Money

部分投資者認為有兩家公司將會虧損

Introduction

Some investors think the stock prices of Pop Mart and Caterpillar will go down.

部分投資者認為泡泡瑪特與卡特彼勒的股價將會下跌。

Main Body

Many people are betting against Pop Mart. The company sells toys. Some people think the company will grow. Other people think the company will grow slowly in 2026.

許多人正對賭泡泡瑪特。該公司銷售玩具。有些人認為公司會成長，而有些人則認為 2026 年的成長將會放緩。

Pop Mart shares went up 8% since April. This means people who bet against the company are losing money. It is now hard to find shares to bet against.

泡泡瑪特的股價自 4 月以來上漲了 8%。這意味著那些對賭該公司的人正在虧損。現在很難找到股票來進行對賭。

Michael Burry is a famous investor. He thinks Caterpillar shares are too expensive. He thinks the price is too high because of AI technology. He thinks the market will crash soon.

Michael Burry 是一位著名的投資者。他認為卡特彼勒的股價過高，且認為價格過高是由於 AI 技術所致。他認為市場很快會崩潰。

Conclusion

People disagree about Pop Mart. However, Michael Burry thinks AI companies are too expensive.

人們對泡泡瑪特的看法分歧。然而，Michael Burry 認為 AI 公司價格過高。

Vocabulary Learning

⚡ The "Opposite" Pattern

In this text, we see how to talk about two different ideas using Some and Other. This is perfect for A2 learners to describe a group of people with different opinions.

The Pattern:

  • Some [people] →\rightarrow [Idea A]
  • Other [people] →\rightarrow [Idea B]

Examples from the text:

  1. "Some investors think... prices... will go down."
  2. "Some people think the company will grow."
  3. "Other people think the company will grow slowly."

Quick Tip: Use "Some" to start your list and "Other" to show the difference. It makes your English sound natural and organized!

Useful Word Pair:

  • Up ↑\uparrow (The price went up)
  • Down ↓\downarrow (The price will go down)

Vocabulary Learning

investor (n.)
A person who puts money into a company to make more money.
Example:The investor bought shares in the new toy company.
stock prices (n.)
The amount of money one share of a company costs.
Example:The stock prices went up because the company is successful.
betting (v.)
Risking money on a guess about what will happen in the future.
Example:He is betting that the price of the shares will drop.
shares (n.)
Small parts of a company that people can own.
Example:She owns ten shares of the technology company.
expensive (adj.)
Costing a lot of money.
Example:The new phone is too expensive for me to buy.
crash (v.)
To fall suddenly and violently in value.
Example:Many people worry that the stock market will crash.
disagree (v.)
To have a different opinion from someone else.
Example:I disagree with you about the best movie.
B2

Analysis of Negative Market Trends for Pop Mart International and Caterpillar Inc.

泡泡瑪特國際及卡特彼勒公司（Caterpillar Inc.）市場負面趨勢分析

Introduction

Recent financial data shows an increase in short-selling for Pop Mart International and a strategic move by investor Michael Burry to bet against Caterpillar Inc.

近期財務數據顯示，泡泡瑪特國際的放空量增加，而投資者 Michael Burry 則採取策略做空卡特彼勒公司。

Main Body

Regarding Pop Mart International, S&P Global Market Intelligence reports that short interest rose to 12.67% of available shares by Tuesday, up from 11.3% in April. Although the stock price dropped from its August peak, it has actually grown by 8% since April. Because of this recovery, Pop Mart is the only company among the ten most-shorted Hong Kong stocks where investors betting on a price drop are currently losing money. There is a clear disagreement between experts: Citigroup maintains a 'buy' rating due to the company's global expansion, whereas Bernstein analyst Melinda Hu suggests that growth is slowing down. Furthermore, because 92.4% of shares are already in use, there are very few shares left to borrow, which could cause a sudden price increase known as a 'short squeeze'.

關於泡泡瑪特國際，S&P Global Market Intelligence 報告指出，截至週二，放空比例上升至可用股份的 12.67%，高於四月的 11.3%。雖然股價從八月的頂峰下跌，但自四月以來實際上增長了 8%。由於這次回升，泡泡瑪特是香港十檔最被放空的股票中，唯一一家讓看空股價的投資者目前虧損的公司。專家之間存在明顯分歧：花旗銀行因公司的全球擴張而維持「買入」評級，而 Bernstein 分析師 Melinda Hu 則認為增長正在放緩。此外，由於 92.4% 的股份已被使用，剩餘可借用的股份極少，這可能會導致股價突然飆升，即所謂的「軋空」（short squeeze）。

At the same time, investor Michael Burry has started a short position in Caterpillar Inc. at $1,060.98, along with other tech-related investments. This decision follows a period where Caterpillar's shares rose by 86% in early 2026 because of its connection to AI infrastructure. Burry believes the stock is overpriced, noting that the price-to-sales ratio is at its highest level in 30 years. He also expressed concerns about the semiconductor sector, stating that current market patterns are similar to the 2000 dot-com bubble. Consequently, he believes that recent spending announcements from Korea will lead to a market correction.

與此同時，投資者 Michael Burry 在 1,060.98 美元水平對卡特彼勒公司建立空頭部位，並搭配其他科技相關投資。此決定是在卡特彼勒股份於 2026 年初因與 AI 基礎設施相關而上升 86% 後做出的。Burry 認為該股價格過高，並指出市銷率處於 30 年來的最高水平。他亦對半導體產業表示擔憂，稱目前的市場模式與 2000 年的網路泡沫相似。因此，他認為韓國最近的支出公告將導致市場修正。

Conclusion

Investors remain divided on Pop Mart's future growth, while famous investors like Burry warn that AI-related industrial stocks may be overvalued.

投資者對泡泡瑪特未來增長的看法依然分歧，而像 Burry 這樣的名投資者則警告，AI 相關的工業股可能被高估。

Vocabulary Learning

🚀 The 'Contradiction' Bridge: Moving from A2 to B2

At an A2 level, you likely use 'but' for everything. To reach B2, you need to express contrast with more precision. This text is a goldmine for this because the stock market is all about opposing opinions.

⚖️ The Power of 'Whereas' and 'Although'

Look at these two patterns from the text:

  1. "Although the stock price dropped... it has actually grown by 8%."
  2. "Citigroup maintains a 'buy' rating... whereas Bernstein analyst Melinda Hu suggests that growth is slowing down."

The B2 Secret:

  • Use Although at the start of a sentence to show a surprising result. (e.g., Although it rained, we went to the beach).
  • Use Whereas to put two different people or things side-by-side like a mirror. (e.g., I love tea, whereas my brother prefers coffee).

🧠 Logical Connectors: 'Consequently' vs. 'Furthermore'

Stop using 'and' and 'so' for every transition. Let's upgrade your vocabulary based on the article:

  • Adding more info: Instead of 'and', use Furthermore.
    • Example: "There are few shares left... Furthermore, this could cause a price increase."
  • Showing a result: Instead of 'so', use Consequently.
    • Example: "Patterns are similar to the 2000 bubble. Consequently, he believes a correction will happen."

🛠️ Practical Application: The 'Opinion Flip'

To sound more like a B2 speaker, try to combine two opposing facts into one sentence using the Although... whereas... logic.

  • A2 style: Pop Mart is growing. But some experts disagree.
  • B2 style: Although Pop Mart is expanding globally, some analysts believe growth is slowing, whereas others maintain a positive rating.

Vocabulary Learning

strategic (adj.)
Relating to a long-term plan designed to achieve a specific goal.
Example:The company made a strategic decision to expand into the European market to increase its global reach.
recovery (n.)
A return to a normal state of health, mind, or strength, or a return to a previous higher level of value.
Example:After a sharp decline in sales, the business saw a slow recovery over the next two quarters.
expansion (n.)
The action of becoming larger or extending the reach of a business into new areas.
Example:The retail chain is planning a rapid expansion by opening ten new stores this year.
overpriced (adj.)
Too expensive; costing more than it is actually worth.
Example:Many analysts believe that tech stocks are currently overpriced due to excessive hype.
correction (n.)
A short-term decline in a stock or market to a level more consistent with its actual value.
Example:After months of rapid growth, the market experienced a correction, and prices dropped by 10%.
overvalued (adj.)
Having a price or value that is higher than its actual or intrinsic worth.
Example:The investor decided to sell his shares because he felt the company was significantly overvalued.
C2

Analysis of Bearish Market Positions Regarding Pop Mart International and Caterpillar Inc.

關於泡泡瑪特國際及卡特彼勒公司看淡市場部位之分析

Introduction

Recent financial activity indicates a rise in short-selling positions targeting Pop Mart International and a strategic bearish entry into Caterpillar Inc. by investor Michael Burry.

近期財務活動顯示，針對泡泡瑪特國際的放空部位有所增加，而投資者 Michael Burry 亦採取策略性看淡卡特彼勒公司。

Main Body

Regarding Pop Mart International, S&P Global Market Intelligence reports that short interest increased to 12.67% of outstanding shares as of Tuesday, rising from 11.3% in April. Despite a significant decline from its August peak to 153 Hong Kong dollars, the equity has appreciated by 8% since April. This recovery has rendered Pop Mart the sole entity among the ten most-shorted Hong Kong stocks where bearish positions are currently incurring losses. The divergence in valuation is characterized by a conflict between bullish projections of IP development and overseas expansion—as evidenced by Citigroup's maintained buy rating—and bearish concerns regarding decelerating growth. Specifically, Bernstein analyst Melinda Hu posits that management's 'pit stop' analogy for 2026 indicates a transition from rapid acceleration to consolidation. Furthermore, a utilization rate of 92.4% suggests a scarcity of borrowable shares, potentially precipitating a technical short squeeze.

關於泡泡瑪特國際，S&P Global Market Intelligence 報告指出，截至週二，其放空比例上升至發行股份的 12.67%，高於 4 月份的 11.3%。雖然股價由 8 月高峰期大幅下跌至 153 港元，但自 4 月以來已上漲 8%。這次反彈使泡泡瑪特成為香港十大最被放空股票中，唯一一檔令空方目前面臨損失的股票。估值分歧的核心在於：一方面是對 IP 開發與海外擴張的樂觀預測（花旗銀行維持「買進」評級），另一方面則是對增長放緩的憂慮。具體而言，Bernstein 分析師 Melinda Hu 認為，管理層將 2026 年比作「中途站（pit stop）」的說法，預示公司將由快速加速轉向鞏固期。此外，92.4% 的利用率顯示可借股份稀缺，可能觸發技術性軋空（short squeeze）。

Simultaneously, investor Michael Burry has initiated a short position in Caterpillar Inc. at $1,060.98, alongside positions in Nvidia, Applied Materials, Tesla, and the SOXX ETF. This action follows a period in which Caterpillar shares appreciated by 86% in the first half of 2026, driven by its perceived role in AI infrastructure. Burry's thesis is predicated on the observation that Caterpillar's price-to-sales ratio has reached a three-decade zenith. This skepticism extends to the broader semiconductor sector; Burry notes that the Philadelphia Semiconductor Index is trading approximately 65% above its 200-day moving average, a metric he associates with the 2000 dot-com bubble. He characterizes recent expenditure announcements from Korea as the catalyst for an impending market correction.

與此同時，投資者 Michael Burry 以 1,060.98 美元之價對卡特彼勒公司建立放空部位，同時亦持有 Nvidia、Applied Materials、Tesla 以及 SOXX ETF 的部位。在此行動之前，卡特彼勒的股價在 2026 年上半年上漲 86%，主因是市場認為其在 AI 基礎設施中扮演重要角色。Burry 的論據是基於他觀察到卡特彼勒的市銷率（P/S ratio）已達到三十年來的高點。他對整個半導體板塊同樣持懷疑態度；Burry 指出，費城半導體指數目前高出 200 日移動平均線約 65%，此指標令他聯想到 2000 年的網路泡沫。他認為韓國近期公布的支出計劃，將成為市場即將修正的催化劑。

Conclusion

Market participants remain divided on Pop Mart's growth trajectory while high-profile investors signal a correction in AI-linked industrial valuations.

市場參與者對泡泡瑪特的增長軌跡依然分歧，而知名投資者則發出訊號，暗示 AI 相關工業估值將會修正。

Vocabulary Learning

The Architecture of Precision: Nominalization and Lexical Density

To transition from B2 to C2, a student must move beyond describing actions and start conceptualizing them. The provided text is a masterclass in Nominalization—the process of turning verbs or adjectives into nouns to create a dense, objective, and authoritative academic tone.

🧠 The C2 Pivot: From Process to Concept

Consider the phrase: "The divergence in valuation is characterized by a conflict between bullish projections... and bearish concerns."

At a B2 level, a writer might say: "Analysts disagree on the value because some project growth while others are concerned."

The Linguistic Shift:

  • B2 (Clausal): Focuses on the agents (Analysts) and their actions (disagree, project).
  • C2 (Nominal): Focuses on the phenomenon (Divergence, Valuation, Conflict, Projections, Concerns).

By transforming actions into nouns, the author removes the 'human' element, shifting the focus to the structural reality of the market. This creates a high lexical density, allowing the writer to pack complex logical relationships into a single sentence.

🔍 Advanced Semantic Nuance

Observe the use of high-level vocabulary used as conceptual anchors:

  1. "Three-decade zenith": Rather than saying "the highest point in thirty years," the author uses zenith. This is not merely a synonym; it is a precise spatial metaphor that elevates the register to C2.
  2. "Precipitating a technical short squeeze": The verb precipitate is used here in its formal sense (to cause something to happen suddenly/unexpectedly). It replaces the B2 "lead to" or "cause," adding a layer of urgency and causality.
  3. "Predicated on the observation": Instead of "based on," the term predicated suggests a formal logical foundation, essential for academic and professional discourse.

⚡ Stylistic Synthesis

To master this, stop searching for 'better words' and start searching for 'better structures.' Instead of using a verb to explain a trend, turn that trend into the subject of your sentence.

Example Transformation:

  • B2: The market corrected because Korea announced new spending.
  • C2: Expenditure announcements from Korea served as the catalyst for an impending market correction.

Key takeaway: C2 proficiency is found in the ability to treat abstract ideas as concrete objects.

Vocabulary Learning

divergence (n.)
A process or state of deviating from a common point or differing in opinion/direction.
Example:There is a notable divergence between the company's optimistic reports and the actual market data.
precipitating (v.)
Causing an event or action to happen suddenly, unexpectedly, or prematurely.
Example:The sudden increase in interest rates ended up precipitating a widespread financial crisis.
predicated (v.)
Found or base something on a specific set of assumptions or conditions.
Example:The investor's strategy was predicated on the belief that the housing market would collapse.
zenith (n.)
The time at which something is most powerful, successful, or at its highest point.
Example:The empire reached its zenith in the second century, controlling vast territories across three continents.
catalyst (n.)
A person or thing that precipitates an event or accelerates a process.
Example:The new government policy served as the catalyst for rapid industrial growth in the region.
trajectory (n.)
The path followed by a projectile or an object moving under the action of given forces; the development of something over time.
Example:Economists are closely monitoring the growth trajectory of emerging markets in Southeast Asia.
Practice All words in a crossword→