Chinese language traders are leaping right into a little-known inventory whose identify seems like “Trump wins massive” lower than every week earlier than the US presidential election.
Shares of Wisesoft Co., whose Chinese language identify “Chuan Da Zhi Sheng” seems like “Trump wins massive” to Mandarin audio system, surged by the day by day restrict for a 3rd day, bringing features this week to greater than 30% regardless of weak point within the broader market. The inventory rallied after Trump gained the election in 2016.
“Wisesoft’s identify consists of each Trump and him successful and that carries a particular that means for Chinese language traders,” stated Shen Meng, a director at Chanson & Co. This comes amid election-related studies that bode properly for Trump, he added.
Retail traders in China are recognized for buying and selling in shares primarily based on homophones — phrases that sound just like one other identify or a phrase. In 2023, retail merchants chased shares with dragon-related names heading into the 12 months of the Dragon within the Chinese language zodiac.
The rally in Wisesoft comes as Trump emerges forward in prediction markets, whereas polls present a neck-and-neck race towards Democratic candidate Vice President Kamala Harris. Curiosity within the inventory has pushed it to overbought territory, primarily based on its 14-day relative power index.
The climb is probably not sustainable given little change in basic assist for the software program and tools maker. The corporate has been reporting losses in recent times and posted a wider web lack of 27 million yuan ($3.8 million) for the primary 9 months of the 12 months in comparison with the identical interval in 2023.
“Traditionally, meme shares don’t final lengthy in China,” stated Billy Leung, an funding strategist at International X ETFs. Buyers “are inclined to overplay it.”
