China stocks soar due to … Trump?
A Chinese company whose name sounds like “Trump wins big” saw its stock surge yesterday as the Republican candidate surged to claim the US presidential election.
Shares in Shenzhen-listed Wisesoft, a computer software company whose Chinese name “chuan da zhi sheng” is a homophone for “Trump wins big”, rose 4.6 percent by the noon break, even as the wider market fell.
At the same time shares in the Yunnan Xiyi Industrial company, whose name sounds like the Mandarin word for “Hillary shares” plunged 9.5pc on the Shenzhen exchange.
The benchmark Shanghai Composite Index was down 1.32pc to 3106.23 and the Shenzhen Composite Index was off 1.39pc to 2051.62.
Mainland Chinese stock exchanges have an unusually high proportion of non-professional investors, and have been criticised for casino-like behaviour, with insider trading and dramatic swings in share prices seemingly unconnected to underlying business prospects.
The US presidential election has drawn widespread interest in China, with people sharing images of the rolling election results on the popular social media platform WeChat.
Despite Trump’s tough talk on China’s trade policies he has some admirers in the country.