Red chip stocks are the stocks of mainland China companies incorporated outside mainland China (often Hong Kong or a British Overseas Territory) and listed in the Stock Exchange of Hong Kong. It refers to businesses based in mainland China and with (majority) shares controlled either directly or indirectly by a government body. This controlling entity could be one or more combinations of the central, provincial or municipal mainland government, with the company listed in Hong Kong to allow private and overseas investment.
The term was coined by Hong Kong economist Alex Tang in 1992 and combines blue chip stocks with "red" representing the socialist economic philosophy of the People's Republic of China.[1]
Stock index of red chips
The Hang Seng China-Affiliated Corporations Index (HSCCI) is a stock market index of 25 red chip companies.
List of red chip companies
As of 30 September 2020, there were 267 red chip companies, including:[2]
- APT Satellite Holdings
- China Aerospace International Holdings
- China Development Bank International Investment
- China Energine
- China Mobile Ltd
- China Overseas Land and Investment
- China Petroleum & Chemical Corporation
- China Resources Enterprise
See also
References
- What are red chip shares? Definition and meaning Market Business News, retrieved 22 October 2020^
- {{cite web|url=https://www.hkex.com.hk/Market-Data/Statistics/Consolidated-Reports/China-Dimension?sc_lang=en&select={55AE8A39-A5A2-4489-95E1-21E30BDEAFD7#select1=0&select2=1|title= List of Red Chip Companies|date=30 September 2020|publisher=Hong Kong Exchanges and Clearing|access-date=23 October 2020}}^