A employees member carries awards depicting Bing Dwen Dwen, one of many mascots of the Beijing 2022 Winter Olympics, in the course of the flower ceremony on the 2022 Beijing Olympics in China on February 6, 2022. Picture by Reuters/Mike Blake
Olympic fever has unleashed a shopping for frenzy on China’s inventory change this week, with buyers pouncing on shares linked to the continuing 2022 Beijing Winter Olympics, together with some whose connection to the video games was purely speculative.
Merchants piled into Invengo Info Expertise, an web of issues (IoT) developer which has no connection to the Olympics however whose Chinese language identify – Yuanwanggu – was interpreted as “look out for (Eileen) Gu” by social media customers.
Eileen Gu, a U.S.-born Chinese language athlete who received gold in freeski Large Air in Beijing on Tuesday, is certainly one of Crew China’s hottest athletes and attracts greater than three million followers on China’s Twitter-like Weibo.
Invengo’s shares soared 10 % to hit the higher restrict of day by day share change.
“Are there any connections between the 2?” one consumer doubted on Weibo. “It is traits of the A-share market.” one other consumer mentioned.
Invengo couldn’t be reached for remark.
“Small caps with names linked to some high-profile occasions typically turn into favorite targets for Chinese language punters,” mentioned Yang Hongxun, analyst at funding consultancy Shandong Shenguang.
Even when an organization has enterprise hyperlinks with the Olympics video games, “you should take a more in-depth take a look at its fundamentals. Generally, worth features in such shares are short-lived, and never sustainable.”
Buyers additionally snapped up firms that are official companions of the Olympics, on bets the video games will enhance their income.
Beijing Yuanlong Yato Tradition Dissemination Co, which manufactures Olympics merchandise that includes panda mascot “Bing Dwen Dwen”, jumped 10 % for 2 straight periods.
The mascots have been offered out on-line and generated hours-long queues at official merchandise shops. Yuanlong mentioned it was organising and coordinating manufacturing unit manufacturing to make sure provides of official Olympics merchandise.
Cultural Funding Holdings, a licensed retailer of the Olympics merchandise, additionally rose 10 % for the second straight session on Tuesday.
The agency mentioned later within the day that promoting spinoff merchandise of the video games will not be their most important enterprise, and affect of Olympics-related enterprise on agency’s monetary efficiency is unsure.
China’s home-grown sports activities model ANTA Sports activities, an official sportswear companion of the Beijing Winter Olympics, surged 6.2 % because the video games began on Feb 4.