Wisesoft, a software company that builds air control programs, has doubled its share prices in the last month due to the association of its Chinese name with the victory of candidate Donald Trump in the upcoming U.S. presidential elections.
'Trump Victory' Stock Rallies in China Before US Elections
This article was published more than a year ago. Some information may no longer be current.
WRITTEN BY
SHARE
Donald Trump Victory Stock Rises in Anticipation of Election Outcome
Wisesoft, a company that builds software for air control purposes, has recently experienced an unexpected rise due to strange reasons. “Chuan Da Zhi Sheng,” Wisesoft’s Chinese name, resembles “Trump’s victory,” a motive that has taken Chinese investors to bet on the company in anticipation of the upcoming U.S. elections.
The surprising behavior comes after a negative Q3 for the company, which reported dropping revenues and a loss of 30%. that accounts for $1.4 million. Nonetheless, share prices have more than doubled since last month, a rise that is not correlated with the 20% gained by the CSI300 index after the Chinese stimulus plan was revealed.
According to local experts, this shows the unconventional drive of Chinese investors, who are willing to put money in the market based on these connections rather than business fundamentals.
Wang Zichen, a researcher at the Centre for China and Globalization, told SCMP these events formed part of the Chinese stock market. He stated:
It’s fair to say that China’s stock market still lacks maturity, and investors often act irrationally.
Furthermore, he stated that while the U.S. election was everywhere, Chinese investors’ attention on the issue was “very unorthodox or even nonsensical.”
Xu Tianchen, another economist, blamed the high level of real investors in the Chinese market and possible manipulation schemes. “The role of speculative interests should not be neglected. They often manipulate illiquid, small-cap stocks, generate a sensation, and then profit-take as retail investors flock in,” he stressed.
This is not the first time a Chinese stock has rallied using Trump’s name as a catalyst. After the assassination attempt Trump suffered back in July, Chinese acoustic component producer Goertek also rallied due to its similar pronunciation of its Chinese name with the Chinese expression for “cutting ears.”
While traditional polls indicate a tight race between Trump and Kamala Harris, the crypto-based prediction market Polymarket gives Trump a sizable advantage over his Democratic rival.
Read more: Polymarket Election Buzz: Why Trump’s Lead Is Stirring Skeptics and Memes Alike
