“Lucky 8s” Extend to Stock Trading in China

Last week, The Wall Street Journal ran a front-page article by James T. Areddy about the influence of numerology on Chinese stock trading. As we’ve blogged about before, belief in lucky numbers is a huge aspect of Chinese culture. The article highlights how the value of a stock can hinge on the presence of “lucky 8s” in numeric ticker symbols or share prices, while a 4, considered unlucky, can have an equally destabilizing effect. With private individuals constituting 60% to 80% of all Chinese traders, that’s a lot of people betting on a scant few numbers.

Financial heavyweights like Goldman Sachs and Merrill Lynch aren’t thrilled at the influence that seemingly random numbers exert on the country’s economy. “This is a reflection of a very immature market,” Jing Ulrich, chairman of China equities for J.P. Morgan Chase & Co., told the Journal. Still, as with the case of investor Yan Caigen, who bought 30,000 shares of a cement company because the stock’s ticker code held double 8s and subsequently turned a profit of $50,000, a little luck is a good thing to have.


Brian S.

Seems like a good arbitrage opportunity.

egretman

You know it's often said that trading on Technical Analysis is just voodoo science. But so many people and so many computer trading strategies incorporate it into their daily trading that you are a fool not to watch the 20,50, and/or 200 day moving averages. It's a self-fulfilling prophecy of the future.

I'd be surprised if Goldman Sachs and Merrill Lynch haven't incorporated the "lucky 8s" into their Chinese trading strategy.

CollegeCat

Do you know why the number 4 is unlucky in China? The number 4 sounds like the word for death.

There is a similar phenomenon seen in census studies of China. When you group the population in a bar graph type, you will see that there is age heaping seen around the number 3. Why? The number 3 sounds like the word for life. Therefore, when someone is 34, 44, 54, 64, etc. they will lie about their age and say they are 33, 43, 53, 63, etc. Age heaping more commonly occurs when an uneducated population does not actually know their age, but in China it is often intentional.

frankenduf

what is it with asians and gambling?- I know I sound kooky like Fred Thompson, but it seems there's a predilection for habitual gambling amongst asian (americans)- I say this because I'm a closet gambler who frequents atlantic city, and there is a disproportion of asian (Chinese,Vietnamese) gamblers

BSE tips

This blog is really nice and informative. We are pleased to know this blog is really helping people. Its our pleasure to post informative content on this useful blog created by webmaster.
The major reason for the downfall of the stock market are:
1. There are macro factors that affect a stock market. Big players in the market always invest lows and sell highs.
2. With inflation going through the roof large investors may have moved from equities to commodities
3. There's also a latest fear that the Indian growth engine has taken a pause. Afterall if the GDP (industrial production) does not grow as expected, once cannot assign the same valuations to a stock

bentonwend

http://www.purevolume.com/listeners/Soma28010 number capacity http://www.purevolume.com/listeners/ReplicaWatches

Brian S.

Seems like a good arbitrage opportunity.

egretman

You know it's often said that trading on Technical Analysis is just voodoo science. But so many people and so many computer trading strategies incorporate it into their daily trading that you are a fool not to watch the 20,50, and/or 200 day moving averages. It's a self-fulfilling prophecy of the future.

I'd be surprised if Goldman Sachs and Merrill Lynch haven't incorporated the "lucky 8s" into their Chinese trading strategy.

CollegeCat

Do you know why the number 4 is unlucky in China? The number 4 sounds like the word for death.

There is a similar phenomenon seen in census studies of China. When you group the population in a bar graph type, you will see that there is age heaping seen around the number 3. Why? The number 3 sounds like the word for life. Therefore, when someone is 34, 44, 54, 64, etc. they will lie about their age and say they are 33, 43, 53, 63, etc. Age heaping more commonly occurs when an uneducated population does not actually know their age, but in China it is often intentional.

frankenduf

what is it with asians and gambling?- I know I sound kooky like Fred Thompson, but it seems there's a predilection for habitual gambling amongst asian (americans)- I say this because I'm a closet gambler who frequents atlantic city, and there is a disproportion of asian (Chinese,Vietnamese) gamblers

BSE tips

This blog is really nice and informative. We are pleased to know this blog is really helping people. Its our pleasure to post informative content on this useful blog created by webmaster.
The major reason for the downfall of the stock market are:
1. There are macro factors that affect a stock market. Big players in the market always invest lows and sell highs.
2. With inflation going through the roof large investors may have moved from equities to commodities
3. There's also a latest fear that the Indian growth engine has taken a pause. Afterall if the GDP (industrial production) does not grow as expected, once cannot assign the same valuations to a stock

bentonwend

http://www.purevolume.com/listeners/Soma28010 number capacity http://www.purevolume.com/listeners/ReplicaWatches