Shares of Wisesoft Co., which sounds like "Trump wins big" in Mandarin, surged by the daily limit following Donald Trump's progress in the US presidential vote, indicating how Chinese investors respond to homophones and political developments.
Conversely, shares of Zhejiang Haers Vacuum Container Co., whose name is phonetically similar to "Harris," fell significantly, further illustrating the Chinese market's speculative reaction to US political news.
Investment strategist Billy Leung cautioned that while meme stocks related to Trump's potential victory may attract attention, investors should concentrate on established sectors like tech and finance for sustainable growth.
Chinese investors are drawn to the US election results amid rising geopolitical tensions, which feeds into their tendency to trade based on language correlations, as evidenced by the performances of these two stocks.
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