Skip to main content

"Trump Wins Big" Stock Soars in China Amid Election Speculation

In a wild turn of events, shares of Chinese software company Wisesoft Co., whose local name translates to "Trump Wins Big," skyrocketed by the maximum daily limit of 10% on Monday. This surge comes as speculation about Donald Trump’s potential election victory heats up following an assassination attempt.


Wisesoft, known in Mandarin as “Chuan Da Zhi Sheng,” saw its stock soar in Shenzhen as investors bet on Trump's return to power. The frenzy in the market is a classic example of how Chinese retail investors love to speculate, especially when it comes to quirky homophones. As the dollar gained and Treasury futures dropped, traders were busy calculating the odds of Trump winning in November.

Just last month, Wisesoft’s stock hit its limit-up after President Joe Biden seemed to stumble during his first TV debate with Trump. This isn’t the first time Wisesoft has made headlines either. The company shot to fame after Trump’s 2016 win, while "Aunt Hillary" (Yunnan Xiyi Industrial Co.) plummeted by 10%, and "Ao Ke Ma" (Aucma Co.), similar to Barack Obama’s name, surged after Obama’s 2008 victory.

Shen Meng, a director at Beijing-based investment bank Chanson & Co., explained this quirky market behavior: “There’s a sort of playful mentality in A-shares, where investors chase after these ‘mysterious associations’ between stock names and global events. No one really believes in these connections, but they enjoy the game.”

Meanwhile, across Asia, South Korean defense and nuclear energy stocks also jumped, with investors seeing them as potential winners if Trump returns to the White House.

In the world of speculative trading, it seems that the name of the game is... well, the name itself!

Comments

Popular posts from this blog

The US Dollar's Dominance Explained (comprehensive)

The World's Favorite Currency The US dollar is the closest thing the world has to a global currency. It is the preferred choice for most international transactions and is held as a reserve currency by many countries, whether friendly or hostile to the US. The dominance of the dollar began in earnest after World War II when the US emerged as a global superpower. Investors trust the dollar and US assets, such as US Treasuries, because they are seen as safe places to store wealth in both good times and bad. This trust is underpinned by the strength and stability of the US economy and its laws. Why Is the Dollar So Dominant? 1. It’s Big The size of the US economy is a primary reason for the dollar's dominance. The US economy is massive, almost as large as the economies of China, Japan, and Germany combined. This economic heft is supported by the largest and most liquid capital markets in the world. US stock markets, home to many of the world's wealthiest and most innovative com...

5 SGX Stocks with Dividend Yield Higher than 5.4%

5 Singapore Stocks with High Dividend Yields: Get Steady Income! If you enjoy getting a steady stream of extra cash, then dividend stocks are for you! These are companies that pay you part of their profits just for holding their shares. However, not all dividend stocks are created equal. Some offer higher dividend yields, making them more attractive.  Let's take a look at five Singapore stocks that offer attractive dividend yields of 5.4% or more. 1. PropNex Ltd (SGX: OYY) PropNex is a big name in real estate, offering services like real estate brokerage, training, and consultancy. As of February 2024, they had 12,233 sales professionals helping people buy and sell homes. Even though 2023 was tough for PropNex, with revenue falling 18.6% to S$838.1 million and net profit dropping 23.3% to S$47.8 million, they still managed to generate S$57.5 million in free cash flow. They also declared a final dividend of S$0.035, bringing the total dividend for 2023 to S$0.06. This gives PropNex ...

Cisco Systems: An Exciting Investment Opportunity

Cisco Systems (NASDAQ: CSCO) was once a tech giant, peaking at $64 per share in 2021. Today, it trades around $45, which could mean it’s undervalued. This might be the perfect time to invest, especially with exciting growth prospects in AI, humanoid robots, and connected devices. Why Cisco Is Attractive Now Strong Financials • Earnings Potential: Analysts predict Cisco will earn $3.70 per share in 2024, dip slightly in 2025, and bounce back to $3.83 in 2026. This suggests solid growth. • Low Valuation: Currently trading at about 12 times its estimated earnings for 2024 and 2026. In contrast, the market trades at over 20 times earnings, making Cisco seem like a bargain. • Solid Balance Sheet: Cisco has $33.21 billion in debt but also holds $19.52 billion in cash. This financial strength allows for increased R&D, higher dividends, or strategic acquisitions, reducing risk for investors. Attractive Dividends • Current Yield: Cisco offers a quarterly dividend of $0.40 pe...