If you thought that it was only in India that “political stocks” worked, it would be too naïve a thought. A political leader at the helm is automatically pursued as a password to getting all approvals and cutting through all red tapes and more sops for his/her owned companies. Just as a common man might feel that he can get his work done expeditiously if he has ‘contacts’ in the Municipality or any Govt office, company owners, obviously with higher stakes, need such ‘contacts’ at the higher levels. It is a known truth, a necessity if you want to run a business in India.
In China, yesterday and today all stocks bearing the an “Emperor” in its name soared. China’s ruling Communist Party on 25th Feb proposed to abolish a constitutional limit on presidential terms, paving the way for president Xi Jinping to stay in power beyond his due retirement in 2022—and perhaps for life. Though criticized by majority, it was a field day for the speculators.
Among the top gainers were Shenzhen Emperor Technology Company, which provides software for ID card issuers.
Well, speculators in China are famous for being completely illogical. When Trump won the Presidential elections in USA, a stock listed in Shenzhen – Wisesoft Co Ltd jumped up big time as the Chinese translation of this name, when pronounced, sounds like “Trump’s big won!”