What is the difference between blue chips and red chips?

The biggest difference between blue chips and red chips: blue chips are the best stocks in China, and red chips are the best stocks in Hong Kong!

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 **?

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 it.

To put it simply, Lanchou is a leading stock in the A-share sector, a listed company with stable performance and generous dividends. Red chips are domestic companies listed in Hong Kong.

Blue chips are generally more expensive than red chips.

Red chips are ** in Chinese mainland, blue chips are big chips **, in casinos, long ago, blue chips often represented the most expensive chips.

Mainland companies domiciled in Hong Kong are red-chip companies, while blue-chip companies are large, well-growing companies with industry representatives. The difference is that the place of registration is different.

If you don't know much about investing initially, it helps to understand how companies make money. Companies are divided into different sectors based on the type of business they operate; Within the industry, there is a small part called the industry. And out. This middle-aged man looks like he is about fifty years old, long.

1. Meaning.

Red chip stocks: refers to the ** 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.

Blue chip stocks: refers to long-term stable growth, large-scale, traditional industrial stocks and financial stocks. The term "blue chips" originates from 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".

2. Classification. Red chips: CDR model (issuance of depositary receipts), China Unicom model, direct issuance of A shares.

Unicom's model is to use spin-off subsidiaries to be listed in China, which is easy to lead to problems in corporate governance, and at the same time, it is not in line with the current idea of overall listing.

The CDR model is applicable to genuine foreign-funded companies, and the adoption of the CDR model will involve foreign exchange control; At the same time, there are many links involved, which is not as simple as the direct issuance of A shares; The good management and depository business will enable the main market interests to flow into foreign-funded financial institutions.

Blue chips: first-tier blue chips, second-tier blue chips, high-performing blue chips, ** blue chips; There are also blue chips**.

Blue chips refer to listed companies with large share capital and market capitalization, but not all ** stocks can be called blue chips, so it is difficult to set an exact standard for blue chips.

Judging from the experience of various countries, those companies with large market capitalization, stable performance, leading positions in the industry and can have a considerable impact on the ** market in which they are located - such as Hong Kong's Cheung Kong and Hutchison; IBM in the United States; Lloyd's in the United Kingdom can serve as a "blue chip" reputation. Those with a large market capitalization are blue chips. There are also some Chinese ** blue chips, such as:

Industrial and Commercial Bank of China, PetroChina, Sinopec.

3. Features. Red chips: Red chips are registered and managed overseas and belong to Hong Kong companies or overseas companies; All red chip shares can be listed and circulated.

Blue chip stocks: companies with good management, stable profit-making ability, and continuous return to shareholders**. Such companies have the ability to make profits in both boom and downturn times and are less risky.

1. 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 term "blue chips" originated in Western casinos. In Western casinos, there are three colors of chips, with blue chips being the most valuable, red chips being the second, and white chips being the worst.

Investors apply these jargon to **?

2. Chinese-funded enterprises listed in Hong Kong. Since people describe China as a red China, the ** issued by listed companies linked to China is called red chips. In the overseas market, investors refer to large companies** that occupy an important dominant position in their respective industries, have good performance, active transactions, and generous dividends as blue chip stocks.

3. The early 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". Blue chips are large companies that occupy a dominant position in the industry, have excellent performance, active trading and generous dividends.

1. Different from the company's performance: blue chips will have a stable dividend return, and the issuing company is usually a listed company with good production and operation conditions. Red chips have nothing to do with corporate performance.

Red chips are registered overseas and listed in Hong Kong, with the relevant concept of large acres of blind land. As a result, blue chips may change based on fluctuations in corporate performance, while red chips usually do not;

2.The listed market is different: red chips are listed in the Hong Kong market**, while blue chips are listed in the global market**.

The above is the difference between red chips and blue chips.

The development of red chips.

In the early days, red chips were formed by the acquisition of some small and medium-sized listed enterprises in Hong Kong by some medium-sized enterprises. In recent years, most of the red-chip stocks have been restructured by some provinces and cities in the mainland and then listed 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 for financing.

In 1993-1997, red-chip companies raised 115 funds through initial issuances and capital increases. $500 million. From January to June 1997, the total amount of funds raised in Hong Kong** was about HK$143.3 billion, of which red chips accounted for HK$23.3 billion.