Investors are never short of trading ideas in China’s $7.6 trillion ($10.7 trillion) stock market. On Thursday, they found inspiration in a very far off place, in the form of a super-massive black hole.
Companies linked to space telescopes and optical lenses bucked broader market declines after scientists released the first-ever image of a black hole. Phenix Optical surged 9.9 per cent in Shanghai to the highest since June. Zhejiang Southeast Space Frame jumped as much as 10 per cent before closing up 3.3 per cent, while Shanghai Moons’ Electric climbed more than 4 per cent before erasing gains. The Shanghai Composite Index slid 1.6 per cent, its biggest loss since March 25.
China’s mum and dad investors are no strangers to quirky trading, from buying stocks with names that sound like US President Donald Trump to those that share the same Chinese character as the securities regulator’s surname.
Companies with even the loosest links to next-generation 5G networks were among favourites this year, though that trade quickly unraveled.