‘Trump wins big’ meme stock soars in China during first US presidential debate
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Chinese investors are known for speculative trading based on such homophones.
PHOTO: AFP
BEIJING – Shares of a Chinese company, whose local-language name sounds like “Trump wins big”, jumped by their daily limit during the first debate between the two candidates in 2024’s US presidential election.
Wisesoft, whose Chinese name “Chuan Da Zhi Sheng” sounds like “Trump wins big” to Mandarin speakers, surged 10 per cent in Shenzhen on June 28. The stock gained as US President Joe Biden appeared to falter in his exchanges with Republican presumptive nominee Donald Trump in Atlanta.
Chinese investors are known for speculative trading based on such homophones. Their interest in the US vote has been piqued by geopolitical tensions between Washington and Beijing.
“These small-cap Chinese meme stocks related to US elections may start to get the attention of retail investors as the US election rhetoric heats up,” said Bloomberg Intelligence analyst Marvin Chen. “The stocks may see large volatility in the coming months based on the perceived chances of Trump or Biden winning.”
Software and equipment maker Wisesoft’s shares saw a similar bump when Trump won the 2016 election, while a stock that sounds like former US president Barack Obama enjoyed a four-day rally of 43 per cent in October 2008.
Of course, shares of smaller companies can move a lot on any given day on a variety of factors. For reference, two stocks that call Mr Biden’s name to mind for Chinese people, Huaiji Dengyun Auto-Parts Holding and Shandong Denghai Seeds, rose by less than 3 per cent each on June 28. Bloomberg
