In the wake of a massive bombshell announcement where China plans to abolish its two-term presidential limit, companies who have “emperor” in their names are doing very well in Chinese stock market.
Companies like Shenzen Emperor Technology Co., Harbin Viti Electronics Co., which contains a name that means “powerful emperor” in Chinese, and Vatti Corp., a manufacturer called “Chinese emperor” in Mandarin, received a significant boost in their stocks by 7.4, 4.4 and 1.7%, respectively, on Monday, according to Bloomberg News.
“Congratulations, people who hold Jiangxi Huangshanghuang Group Food, such great news for your shares,” one investor said about the meat sauce manufacturer whose shortened name translates to “king of kings,” AFP reported. It is also worth noting that the company’s stock climbed 2.9% following the massive announcement.
Another company that received a boost in the Chinese stock market is Shanghai Emperor of Cleaning Hi-Tech Co., which climbed up by 3.3% on Monday.
“Some investors might be deliberately highlighting the connection to lure more people to buy the shares so their holdings would increase in value,” vice-president of Shanghai-based company Baptized Capital, Yin Ming, said. “We’ve seen similar speculative trades in the past.”
According to the best stock trading app around, events such as this happen quite often in the Chinese stock market. Superstitious investors often put their money on companies related to what’s currently big at the time of investing.
Like for instance, in 2016, companies with names that sound like “Trump Wins Big” were pretty successful in the stock market, while another company with the name “Aunt Hillary” did somewhat poorly, Shanghaiist via Medium reported.
The complexity of this superstition goes beyond a phrase or even a word. Last year, companies with words related to “Beijing,” “Development,” “Construction” and “Cement” for their names saw an increase in their stocks after it was announced that China was planning to turn a rural backwater in Heibei province into the next Shenzen or Pudong surfaced, said in the report.
Feature Image via YouTube/CCTV