An interesting phenomenon happened in the Chinese stock market after the assassination attempt on former U.S. President Donald Trump. According to AFP, the Chinese software company’s stock price surged.
Stock price surge due to homophone
The stock price of WiseSoft, a company listed on the Shenzhen Stock Exchange, soared to a minimum daily minimum of 10% on Monday. An interesting linguistic element lies behind this phenomenon. The Chinese name of WiseSoft, “Chuan Da Zhi Sheng,” sounds like “Trump (川普) wins with great wisdom (大智).” This coincidental sound match gained investors’ attention, leading to a rise in the stock price.
WiseSoft, also known as “Trump-themed stock”
The company has reacted sensitively to Trump-related issues in the past. For example, stock prices skyrocketed after the last presidential debate and the 2016 election. It started to be recognized as a “Trump-themed stock” in the Chinese market.
“The sight of Trump bleeding after being shot and shaking his fist in the air has sparked Chinese traders to bet on his victory in the upcoming November election,” analyzed AFP.
Characteristics of the Chinese stock market
This case illustrates the unique characteristics of the Chinese stock market. AFP explained, “Speculative trading based on so-called ‘meme stocks’ is common in the mainland, often leading to dramatic price fluctuations unrelated to business prospects.”
As such phenomena often occur regardless of the actual value, investors must be cautious.
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