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A tech stock with a name sounding like 'Trump's Big Win' surged by the maximum in China after the Pennsylvania assassination attempt
Shares of Wisesoft, a producer of air-traffic-control software, surged 10 per cent on both Monday and Tuesday. Meanwhile, the CSI300 index that tracks blue chip stocks in Shanghai and Shenzhen rose 0.2 per cent and fell 1 per cent, respectively.
The stock has doubled to 19.98 yuan (US$2.80) over the past month, against an around 20 per cent rise of the index on China’s stimulus plan.
The privately controlled Wisesoft – whose Chinese name “Chuan Da Zhi Sheng” resembles “Trump victory” – is sometimes regarded by some retail investors as a “Trump concept stock”, despite more than 90 per cent of its revenue being made in China and with little business ties with America.
And this is not the first time the company has ridden a Trump-related wave. In June 2015, just days before Trump formally announced his candidacy for the Republican nomination ahead of the November 2016 election, the stock skyrocketed to more than 47 yuan a share before tanking to 16 yuan in less than a month.
‘Trump victory’ meme stock surges in China as buzzwords outweigh fundamentals
‘It’s fair to say that China’s stock market still lacks maturity, and investors often act irrationally,’ think tank researcher says.
www.scmp.com
A tech stock with a name sounding like 'Trump's Big Win' surged by the maximum in China after the Pennsylvania assassination attempt
Chuanda Zhisheng, named after Sichuan University, has a meme status because it coincidentally uses the same characters as a nickname for Trump.
www.businessinsider.com
