What do both red chips and blue chips mean! The difference between the two

Updated on Financial 2024-02-20
9 answers
  1. Anonymous users2024-02-06

    Blue chip stocks refer to ordinary companies with a stable earnings record, can pay generous dividends on a regular basis, and are recognized as companies with good performance"Performing stocks"。Blue chips: In the market, investors refer to large companies that occupy an important dominant position in their industry, have good performance, have active trading and have generous dividends.

    The term "blue chips" originated in Western casinos. In Western casinos, there are two colors of chips, with blue chips being the most valuable, followed by red chips and white chips. Investors apply these jargon to **?

    What are red chips?

    The concept of red chips was born in Hong Kong in the early 90s ** Market Chang The People's Republic of China is sometimes referred to internationally as Red China, and accordingly, Hong Kong and international investors refer to those ** with the concept of Chinese mainland registered overseas and listed in Hong Kong as red chips.

    There is some controversy about how to define a red chip. There are two main points of view. One view is that the distinction should be made according to the scope of business.

    If the main business of a listed company is in Chinese mainland, and most of its profits come from this business, then this ** registered outside China and listed in Hong Kong is a red chip. The Red Chip Index compiled by Bloomberg, an international information company, is selected according to this criterion. Another view is that it should be divided according to the number of interests.

    If the majority of the shareholders' equity of a listed company comes from Chinese mainland, or has a mainland background, that is, it is controlled by Chinese capital, then the ** registered outside China and listed in Hong Kong is classified as a red chip stock. In April 1997, when Hang Seng Index Services Company began compiling the Hang Seng Red Chip Index, it used this criterion to classify red chips. Typically, both types of companies** are considered red chips by investors.

    In the early days, red chips were mainly formed by the transformation of some Chinese-funded companies after acquiring small and medium-sized listed companies in Hong Kong, such as "CITIC Pacific". The red-chip stocks that have emerged in recent years are mainly those formed by some provinces and municipalities in the mainland after reorganizing their window companies in Hong Kong and listing them in Hong Kong, such as "Shanghai Industrial" and "Beijing Holdings." Red chips have become an important channel for mainland enterprises to enter the international capital market to raise funds, in addition to B-shares and H-shares.

    The rise and development of red chips has also had a very positive impact on Hong Kong**. From 1993 to the end of June 1997, the red-chip company raised US$100 million through initial offerings and capital rights issues. From January to June 1997, the total amount of funds raised in the Hong Kong** market was about HK$144.3 billion, of which red chips accounted for the total.

    Resources.

  2. Anonymous users2024-02-05

    Blue chips refer to large-cap, traditional industrial stocks and financial stocks with long-term stable growth. Companies with good operating performance and stable and high cash dividend payments are often referred to as "blue chips".

    Red chip refers to ** with the concept of Chinese mainland registered outside China and listed in Hong Kong. "With the concept of Chinese mainland" mainly refers to Chinese holding and main business in Chinese mainland.

    In the early days, red chips were mainly formed by the transformation of some Chinese-funded companies after acquiring small and medium-sized listed companies in Hong Kong. The red-chip stocks that have emerged in recent years are mainly formed after some provinces and municipalities in the mainland have reorganized their window companies in Hong Kong and listed them in Hong Kong.

  3. Anonymous users2024-02-04

    What is broadcast on TV does not necessarily mean what you can see, understand no86

  4. Anonymous users2024-02-03

    Blue chip stocks refer to listed companies with stable performance and generous dividends, good industry prospects, leading positions in the industry to which they belong, and large market share and market influence.

    Red chips refer to the shares issued by companies in which the largest controlling stake is directly or indirectly affiliated with relevant authorities or enterprises in Chinese mainland and listed on the Hong Kong Stock Exchange.

  5. Anonymous users2024-02-02

    The concept of selling blue chips and red chips and distinguishing between them.

  6. Anonymous users2024-02-01

    Red chips refer to those registered outside China and listed in Hong Kong with the concept of Chinese mainland**.

    Blue chips refer to large-cap, traditional industrial or financial stocks with stable long-term performance.

  7. Anonymous users2024-01-31

    Red chips are highly competitive, and blue chips are lucrative, and it is generally more rewarding to buy blue chips.

  8. Anonymous users2024-01-30

    Blue chips refer to large companies that are in an important dominant position in a certain industry, with excellent performance, active trading and generous dividends, and blue chips are also regarded as "high-performance stocks" in some places.

  9. Anonymous users2024-01-29

    Blue chips refer to large-cap, traditional industrial stocks and financial stocks that have grown steadily over the long term.

    Red chip refers to ** with the concept of Chinese mainland registered outside of China and listed in Hong Kong.

    The term "blue chips" originated in Western casinos, where there are three colors of chips, with blue chips being the most valuable. Companies with good operating performance and stable and high cash dividend payments are often referred to as "blue chips".

    "With the concept of Chinese mainland" mainly refers to Chinese holdings and main businesses in Chinese mainland.

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