Red Chip
Categories: International, Trading
“Red chip” is the term we use for a company that is based in mainland China, incorporated internationally, and listed on the Hong Kong Stock Exchange.
Why red? One look at the Chinese flag should answer that question pretty quickly. (Hint: it’s red.)
Anyway, the Hong Kong Stock Exchange is kind of a big deal, seeing as how it’s one of the largest markets in Asia and all, and there are pretty strict rules about the companies who trade on it. This makes it super-attractive to foreign investors. But if the Hong Kong Stock Exchange is a cake, then red chip stocks are the icing. They offer a safe and regulated way for those foreign investors to get in on (and profit from) some of that impressive Chinese economic growth action.
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Finance: What is a Blue Chip?18 Views
Finance a la shmoop, what is a blue-chip? Alright people think kids, plastic, poker
chipset, remember those cheap plastic poker chips? [Someone looking at their cards]
Yeah the the whites were supposed to be a penny [The money equivalents of the chips are shown]
the Reds were a nickel and the Blues the most highly valued chips in the set well
they were worth a dime and that's where the name came from the highly valued
blue chip and it refers to high-quality, highly valued companies Disney, Coke and [Logos of the blue chip companies]
in today's world Google, Amazon, Shmoop alright maybe not Shmoop. All right but
the rest of those companies are blue chips which have a long track record of [Blue chip stamp]
growing profits if not revenues for a very long period of time and they have
corporate cultures that are all about winning [People playing poker with their heads replaced by briefcases with company logos on them]
whatever game they're in so go blue, well sure them too... [Football player is tackled]