‘Trump wins big’: Chinese company shares surge as ex-POTUS emerges victorious in US Polls 2024

US Elections 2024: Shares of a Chinese company that sounds like “Trump wins big” to Mandarin speakers jumped as Donald Trump widened his lead in the US presidential vote, while a stock that sounds like Kamala Harris declined.

Shares of software and equipment maker Wisesoft Co., whose local-language name “Chuan Da Zhi Sheng” implies a Trump victory, surged by the daily limit in Shenzhen. The same stock rallied after the Republican won the 2016 election.

In contrast, shares of thermos-maker Zhejiang Haers Vacuum Container Co., whose Chinese name “Haers” is similar to “Harris,” slipped as much as 8.1% on Wednesday.

“With Trump’s potential win, there could be a risk-on wave” for related meme stocks, said Billy Leung, an investment strategist at Global X ETFs. “While they’re worth watching, the real focus should be on established sectors like tech and finance, which stand to benefit more sustainably from policy shifts tied to a Trump administration.”

Trading based on homophones

Chinese investors are known for speculative trading based on such homophones — words that sound similar to another name or a phrase. Their interest in the US vote has been piqued by geopolitical tensions between Washington and Beijing.

Wisesoft’s rally comes as Trump was projected to win two battleground states, with the vote count continuing.

Shares in Trump’s social media company Trump Media & Technology Group Corp. also climbed in late trading in New York.