• David Tepper is growing way more bullish on Chinese stocks amid the nation’s recent fiscal stimulus measures.

• The brand latest measures include interest-rate cuts, liquidity support, and provoking company stock buybacks.

• Tepper views China’s stock market as more attractive than the US stock market attributable to valuation differences.

It’s a buy “all of the pieces” moment for Chinese stocks after the country launched a fiscal stimulus bazooka this week, based on billionaire investor David Tepper.

In an interview with CNBC on Thursday, Tepper outlined his bull case for China’s stock market, which has been practically left for dead in recent months since it trades on the similar level it did in 2007.

“I believed that what the Fed did last week would lead to China easing, and I didn’t know that they were going to bring out the big guns like they did,” Tepper said, referring to the Federal Reserve’s jumbo 50-basis point rate of interest cut last week.

That big cut is giving China’s central bank some respiratory room in implementing its own fiscal and monetary stimulus policies, based on Tepper.

In recent days, China has cut key rates of interest, announced liquidity support for its stock market, lowered bank reserve requirements, and even encouraged company stock buybacks.

“Encouraging buybacks of stocks. Okay, that’s China. That’s stock buybacks. Not only encouraging it, lending you money to do it,” Tepper said.

He added: “I took it that they did lots, they exceeded expectations, and he promised to do increasingly an increasing number of, and that may be very strange language, especially for any central banker, but especially over there,” referring to recent dovish comments from People’s Bank of China governor Pan Gongsheng.

Chinese stocks have responded to the stimulus measures with big moves higher. On Thursday, shares of large-cap China tech stocks like Alibaba, PDD Holdings, and Tencent Holdings surged greater than 7%.

Even the broader iShares MSCI China ETF soared 8% on THursday and is up greater than 16% this week alone.

But Tepper believes Chinese stocks have a great deal of room to run higher, even after the recent surges.

“Even with the recent moves they’re like on a flat-line low as compared with where they’ve been previously. And likewise you’re sitting there with single multiple PEs, with double-digit growth rates for the big stocks that trade over here,” Tepper said.

As as as to if steep tariffs from a possible Donald Trump Presidency would shake his bullish view on China, Tepper said it probably wouldn’t matter on account of the “internal stimulus” measures.

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“Obviously that’s incredibly good for very undervalued Chinese equities, especially when the federal government is encouraging buybacks,” Tepper said.

On US markets, Tepper said he just isn’t following his buy “all of the pieces” mantra with Chinese stocks and is being more selective in buying US stocks.

Tepper, who runs the $6 billion hedge fund Appaloosa Management, highlighted US casinos which have exposure to China, like Wynn Resorts and Las Vegas Sands, along with firms which will be exposed to the power demand of the AI tech trade as potential buys.

“I don’t love the US markets on a value standpoint, but I sure as heck won’t be short, because I’d be nervous as heck of the setup with easing money in every single place, a relatively good economy, and China just doing massive stimulus coming in, so it is going to make me nervous to not be somewhat long the US,” Tepper said.

He added: “You probably can’t be short the US.”

Tepper’s biggest position as of June 30 was Alibaba, which made up 12% of his portfolio. He hinted that he’s buying more of the stock.

“I even have limits. I probably said a protracted time ago I don’t go above 10% or 15%, well that might be not true anymore,” Tepper said.

Tepper also owns shares of PDD Holdings, Baidu, the KraneShares China Web ETF, and JD.com.

As to how Tepper is hedging his bullish China trade, as some might expect a hedge fund to do, he will not be.

“My counter bet is that I don’t care,” Tepper said.

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