Chinese Stock That Sounds Like ‘Trump Wins Big’ Wins Big

(Bloomberg) -- Donald Trump’s journey to victory in the U.S. presidential election prompted the biggest rally in five months for a Chinese stock that sounds like “Trump Wins Big” to Mandarin speakers. “Aunt Hillary” fell.

Wisesoft Co., whose local-language name “Chuan Da Zhi Sheng” sounds like “Trump Wins Big,” closed 6.4 percent higher with trading volume six times the three-month average. Yunnan Xiyi Industrial Co., or “Aunt Hillary,” tumbled 10 percent. It was the only stock down by the daily limit among nearly 3,000 A shares listed in mainland China.

“Investors are probably chasing Wisesoft due to its homophonic of Trump winning,” said Su Baoliang, a Beijing-based analyst at Sinolink Securities. “Such a smallcap stock can be easily pushed up with modest fund inflows.”

Chinese investors are no strangers to speculative trading in stocks based on their names. Aucma Co., whose Mandarin name of “Ao Ke Ma” is similar to that of Barack Obama, started a four-day rally of 43 percent in October 16, 2008, after the third U.S. presidential debate. It later jumped another 23 percent over six days following Obama’s victory.

Guolian Securities echoed Su’s view that Wisesoft’s gains might be related to its name. There has been no change in its business fundamentals, analyst Zhang Lixin said, adding that it’s worth long-term investment as orders are almost guaranteed from military clients.

Aside from its name, Wisesoft may have some fundamental support for the share rally, according to Su, who is upbeat on the company’s growth outlook over the next three to five years.

“The software and heavy equipment provider is fundamentally strong and set to benefit from face recognition as well as China’s upgrade of air traffic control products,” he said.

To contact Bloomberg News staff for this story: Amanda Wang in Shanghai at twang234@bloomberg.net, Fox Hu in Hong Kong at fhu7@bloomberg.net, Feng Cai in Shanghai at fcai7@bloomberg.net.

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net, Divya Balji

With assistance from Editorial Board