The stocks are usually a target of short sellers or those who bet against the stock. With the rising momentum, other investors join and start buying to boost the price, which prompts others betting against the stock to buy more to cover losses.
Shares of Wisesoft Co., which sounds like "Trump wins big" in Mandarin, surged by the daily limit following Donald Trump's progress in the US presidential vote, indicating how Chinese investors respond to homophones and political developments.