At Extreme Investor Network, we always strive to bring you the latest and most intriguing financial news from around the world. Today, we have an interesting story about how shares of a Chinese company saw a significant surge after an assassination attempt on former US President Donald Trump.
Wisesoft Co., a software maker with a Chinese name that translates to “Trump Wins Big” in Mandarin, experienced a 10% increase in its stock price in Shenzhen. This uptick came as traders speculated on the possibility of Trump winning the upcoming election after the recent incident. The company had previously seen a similar surge after Trump’s victory in 2016 and when President Joe Biden seemed to struggle in a debate against Trump.
In China, individual investors are known for engaging in speculative trading based on homophones, or words that sound similar to other words. This phenomenon has led to stocks like Aucma Co. (similar to Barack Obama’s name in Mandarin) and Yunnan Xiyi Industrial Co. (referred to as “Aunt Hillary”) experiencing significant fluctuations in their prices based on global events.
Shen Meng, a director at Beijing-based investment bank Chanson & Co., commented on this trend, stating, “There has been a common mocking mentality in A-shares, where all investors are chasing the ‘mysterious association’ between individual stock names and major global events. Even though no one believes in the true existence of this association, they enjoy it.”
In other parts of Asia, shares of South Korean defense and nuclear energy firms also saw an increase as these sectors were viewed as potential beneficiaries of a Trump victory.
At Extreme Investor Network, we keep a close eye on market trends and provide valuable insights to help our readers make informed investment decisions. Stay tuned for more updates on the latest developments in the world of finance and investing.