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Nov 06, 2024

Vacuum flask-maker 'Haersi' rallies in China's stock market in support of Harris - Business & Economy News

As the neck-to-neck battle between Republican presidential nominee Donald Trump and Democratic candidate Kamala Harris continued in the ongoing US presidential elections, its reflection was felt in

As the neck-to-neck battle between Republican presidential nominee Donald Trump and Democratic candidate Kamala Harris continued in the ongoing US presidential elections, its reflection was felt in the Chinese stock market when shares of companies with names sounding similar to the presidential candidates went up and down absurdly.

The stocks of a Chinese vacuum flask maker rose by 10 per cent in the Chinese market after a Des Moines Register poll indicated that Harris was leading by 3 percentage points in Iowa which has been a Republican-voting state. The reason behind the rise in the stock was the name of the company "Haersi" which has a stark resemblance with the Democratic candidate's name.

Meanwhile, the shares of an aviation technology company Wisesoft fell by 10 per cent because its Chinese name Chuanda Zhisheng distantly means ‘Trump victory’.

According to analysts, such reasons behind stocks rallying in the Chinese stock market show the structural problems within it which makes it a problem to carry out long-term value investments.

Also Read: It's a tie for Trump and Harris in Dixville Notch. Here's what a 3-3 split means

It has been observed that retail investors get driven by tenuous connections, rumours and policies that are irrelevant to the fundamentals.

“Essentially, it indicates that the A-share market is a speculative market, driven by emotions, although it is hard to decipher how exactly these emotions resonate with the US election,” said Wen Kejian, a financial researcher while speaking to the South China Morning Post.

On Tuesday (Nov 5), the fluctuations in the prices of Haersi and Wisesoft continued and because of mixed polling results, the stock related to Harris saw a fall and the stock supporting Trump rose in the market. At the end of the day in the market, the stocks closed down 2.2 per cent and up 8.7 per cent, respectively.

However, the discussions around who will become the next US president continued as people spoke about how the outcome of elections will determine the future relations between the two countries.

Watch: ‘Shocking’ Iowa Poll Shows Kamala Harris Ahead In Red State, Trump Reacts

“Go Harris,” wrote an investor on the investing forum Xueqiu.com and also said that he bought the Haersi stock on Monday (Nov 4) and booked some profits.

“Major positive news for President Trump,” wrote another, and shared a screenshot of a Trump-Harris tie in the midnight election result from Dixville Notch, New Hampshire. “The big show started,” he said.

Even in the past two US presidential elections, Wisesoft has seen ups and downs in the market. In 2020, the stock performed well because Trump was leading in the elections.

(With inputs from agencies)

Prisha is a digital journalist at WION. With almost 10 years of experience in international journalism, she majorly covers political and trending stories. She also&n