‘Trump wins big’ company shares rise 10% in China during US presidential debate
Shares of a Chinese company whose vernacular name sounds like “Trump wins big” crossed their daily high during the first debate between the two candidates in this year’s US presidential election.
Wisesoft Co., whose Chinese name “Chuan Da Zhi Sheng” sounds like “Trump wins big” to Mandarin speakers, fell 10% in Shenzhen on Friday. The stock gained as President Joe Biden appeared to be faltering in his trade with Republican presumptive nominee Donald Trump in Atlanta.
Chinese investors are known for speculative trading based on such homophones. Their interest in the US vote is due to political tensions between Washington and Beijing.
“These small Chinese meme stocks related to the US election may start to attract the attention of retail investors as the US election campaign heats up,” said Bloomberg Intelligence analyst Marvin Chen. “Stocks could see significant volatility in the coming months based on perceived chances of Trump or Biden winning.”
Shares of software and hardware maker Wisesoft saw a similar bump when Trump won the 2016 election, while the Barack Obama-sounding stock enjoyed a four-day rally of 43% in October 2008.
Of course small company stocks can move a lot on any given day on a variety of factors. For reference, two stocks that recall Biden’s name to Chinese people, Huaiji Dengyun Auto-Parts Holding Co. and Shandong Denghai Seeds Co., rose less than 3% each Friday.
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