Wisesoft, a Chinese tech company specializing in air control software, has seen a surprising stock surge tied to an unusual factor: its Chinese name, “Chuan Da Zhi Sheng,” sounds like “Trump’s victory.” This linguistic coincidence has spurred Chinese investors to rally around Wisesoft in anticipation of the upcoming U.S. elections.
The unexpected rise follows a challenging third quarter for Wisesoft, marked by a revenue decline and a 30% loss amounting to $1.4 million. Despite this, the stock has more than doubled over the past month, greatly outpacing the 20% gain in the CSI300 index, fueled by recent Chinese economic stimulus measures.
Market analysts attribute this rally to the unique dynamics of the Chinese stock market, where investments are often influenced by unusual factors over company fundamentals.
Wang Zichen, a researcher at the Centre for China and Globalization, commented in the South China Morning Post, “China’s stock market remains relatively immature, with investors often acting irrationally.” Wang noted that the fervor around U.S. election outcomes reflects a highly unconventional approach among Chinese investors.
Economist Xu Tianchen echoed these views, pointing to speculative interests and market manipulation in China’s small-cap stocks. “Speculators sometimes leverage illiquid stocks to stir up interest and profit as retail investors jump in,” he explained.
This isn’t the first time Chinese stocks have responded to Trump-related events. Following an assassination attempt on Trump in July, shares of Goertek, a Chinese audio component producer, spiked, as its Chinese name echoed the phrase “cutting ears.”
Meanwhile, in U.S. election predictions, traditional polls indicate a close race between Trump and Democratic contender Kamala Harris, while the cryptocurrency-based prediction platform Polymarket suggests Trump may have an edge.
