SHANGHAI - Chinese speculators pounced on stocks with “emperor” in their name on Monday, after the ruling Communist Party set the stage for President Xi Jinping to stay in office indefinitely.
The party proposed on Sunday to remove a constitutional clause limiting presidential service to just two terms in office, boosting prospects of Xi remaining in power after the end of an all but certain second term set to start next month. Shenzhen Emperor Technology Co Ltd <300546.SZ> surged nearly 10 percent in morning trade, while Anhui Yingjia Distillery Co <603198.SS> - whose Chinese name includes the phrase “greeting the emperor’s carriage” - rose as much as 4 percent. Harbin VITI Electronics Corp <603023.SS>, which has words meaning “powerful emperor” in its name, shot up over 7 percent at one point.
The broader market <.CSI300>, meanwhile, rose less than 1 percent. “This is pure ‘stir-frying’. It has got nothing to do with fundamentals,” said Yang Hongxun, Shanghai-based analyst at investment consultancy Shandong Shenguang, adding he expects those shares to be dumped “pretty soon”.
The “emperor” stock boost isn’t the first such play by Chinese speculators. (Reuters)