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China has been cheering ecstatically for US-born freestyle skier Eileen Gu, who obtained a gold medal for China on the Beijing Winter Olympics in the course of the ladies’s large air competitors yesterday (Feb. 8). Now it seems corporations whose names resemble Gu’s Chinese language title are additionally getting a carry.
It isn’t unusual for small-cap corporations listed in China to see their shares transfer as a consequence of information occasions, even when the corporations haven’t any connection in any respect with the newsmakers. In November 2020, a Chinese language firm whose title appears like “Trump wins large” in Mandarin Chinese language surged nearly 10% on the ultimate voting day of the US presidential election, whose two candidates have been the Democratic get together’s Joe Biden and the Republican get together’s Donald Trump.
The character Gu (谷) can function a Chinese language final title, as within the case of Eileen Gu who is named Gu Ailing (谷爱凌) in China, and can also be the Chinese language phrase for “valley.” On Tuesday, an organization named “Yuanwanggu” (远望谷), whose title will be roughly translated as “ Gu from afar,” surged almost 10% across the time Gu received her first Olympic gold medal, reaching its day by day restrict and resulting in buying and selling in its shares being suspended on the Shenzhen Inventory Alternate.
The corporate’s proxy reputation continued right now, with its inventory value rising round 10% on the market opening, once more forcing buying and selling to halt. Many buyers and monetary media retailers have attributed the share motion to the corporate’s title, saying it appears to convey the supportive message (hyperlink in Chinese language) of “ Gu getting her championship from afar.”
The corporate informed Quartz by way of e-mail that it doesn’t have any connection to Gu, and that its share motion is affected by “a number of elements” within the markets. “Investing requires warning, please deal with any rumor rigorously,” stated the corporate, an internet-of-things developer with a market cap of round 5 billion yuan ($785 million). Regardless of the warning, among the firm’s buyers have prompt that it ought to signal a promotional partnership with Gu, in line with China Securities Journal.
Shanghai-listed Lingzhi software program, which has “Ling” (凌) in its title, additionally added round 6% right now.
Unrelated to Gu, Yuanlong Yato, a Beijing-based firm that manufactures the favored Winter Olympics’ mascot “Bing Dwen Dwen,” a panda sporting an icy shell, jumped 10% for 2 straight periods.
The actions primarily based on information unconnected to fundamentals is because of the “too clearly retail investor traits” of the Chinese language inventory market, the place institutional buyers have but to grow to be dominant, Chen Yuan, an analyst with an asset administration agency, was quoted as saying (Chinese language) in regards to the Gu-related frenzy by Chinese language monetary information outlet Di Yi Feng Kou.
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