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What’s in a name? Trump is winning big on China’s stock market

Vice president-elect Mike Pence and Republican president-elect Donald Trump shake hands during his election night event at the New York Hilton Midtown in the early morning hours of November 9, 2016 in New York City.
Spencer Platt | Getty Images
Vice president-elect Mike Pence and Republican president-elect Donald Trump shake hands during his election night event at the New York Hilton Midtown in the early morning hours of November 9, 2016 in New York City.

Financial markets have had a torrid Wednesday given the nervousness over the outcome of the U.S. election. But one stock stands out amid the carnage.

Shares of Wisesoft, whose Chinese name "chuan da zhi sheng" sounds like "Trump's big win" rose sharply on expectations that Republican candidate Donald Trump will pull off an unexpected win. The company, which provides software for air traffic control systems, saw its shares climb over 6 percent on Wednesday, compared with a 0.62 percent drop in Shanghai shares.

Traders were less kind on Yunnan Xiyi Industrial, whose Chinese name "xi yi gu fen" sounds like "Hillary aunt stock". The auto parts manufacturer's stock plunged 10 percent, far greater than the 0.57 drop in the broader market in Shenzen where the stock is listed.

The U.S. presidential election has attracted plenty of interest in China with commentators lambasting the heated nature of the campaign that saw both Trump and Democrat candidate Hillary Clinton trade insults.

An editorial in the state-run China People's Daily newspaper noted that American politics was hurting U.S. competitiveness and undermining traditional values and a Trump victory could help soothe relations between the U.S. and China. Ties between the two countries have been frayed recently over disputes in the South China Sea.

"On international affairs, the intervention policy line practiced by Obama and Clinton will erode national strength," the newspaper said.

In contrast, a Trump victory could end the "self-damaging competition" between China and the U.S, the editorial added.


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