Company 'WiseSoft' with Soaring Stock Prices in China
Similar Pronunciation to "Trump Will Win"
"Speculative Trading Based on Meme Stocks"
After the shooting incident involving former U.S. President and Republican presidential candidate Donald Trump, the stock price of a Chinese company with a name phonetically similar to "Trump wins" surged. On the 15th (local time), AFP reported that the stock price of software manufacturer WiseSoft (川大智勝, Chuanda Zhisheng) soared by the daily price limit of 10% on the Shenzhen Stock Exchange in China. The Chinese name of WiseSoft, ‘Chuanda Zhisheng’, sounds similar to the phrase "Trump (Chuanpu) wins with great wisdom (Dazhi)."
WiseSoft has long been regarded as a "Trump-themed stock" in the Chinese market. The company's stock price hit the price limit after former President Trump was widely seen as having won decisively in the TV debate against President Biden last month. Additionally, the stock price also surged when Trump won the presidential election in 2016.
In China, speculative trading based on "meme stocks" is commonly reported. AFP analyzed, "The image of Trump bleeding after the shooting and shaking his fist in the air prompted Chinese traders to bet on his victory in the upcoming U.S. presidential election this November," adding, "Speculative trading based on so-called 'meme stocks' is common in mainland China, often causing dramatic price fluctuations unrelated to business prospects."
An investment bank official in Beijing told Bloomberg, "In China’s A-shares (mainland stocks), investors often chase baseless correlations between company names and major global events," and added, "Everyone knows the company itself has nothing to do with the event, but they just enjoy it."
Meanwhile, after news of the shooting of former President Trump broke, Bitcoin, the leading cryptocurrency, rose to the $60,000 range. This reflects market optimism as the possibility of Trump’s election, who has a relatively favorable stance toward the cryptocurrency industry, increased. Last month, at a fundraising event in San Francisco, Trump declared he would be the 'cryptocurrency president' and promised active support for the crypto industry.
On the same day, Trump was officially confirmed as the Republican presidential candidate at the party convention held at the Fiserv Forum in Milwaukee, Wisconsin. This marks the third time Trump has been nominated as the Republican candidate for the 2024 presidential election, following 2016 and 2020.
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