China stocks soar due to … Trump?

The Myanmar Times - - The Pulse -

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.

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