Red chip stocks (Chinese: 红筹股; pinyin: hóng chóu gǔ; Jyutping: hung4 chau4 gu2) are the stocks of mainland China companies incorporated outside mainland China and listed in 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]
- ^ "What are red chip shares? Definition and meaning". Market Business News. Retrieved 22 October 2020.