Red Chip

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Red Chip

A stock in a company operating in the People's Republic of China that trades on the Hong Kong Stock Exchange. Generally speaking, only Chinese citizens are allowed to invest on Chinese stock exchanges. Red chips are therefore separately incorporated in Hong Kong in order to allow foreign investment in Chinese companies. The term refers to the color red, which is the official color of the Communist party.
References in periodicals archive ?
The Hang Seng China-Affiliated Corporations Index, covering locally listed companies backed by Chinese government entities, was also higher, up 25.
Franshion Properties is a constituent of Hang Seng Composite Index Series (including Hang Seng Composite Index, Hang Seng China-Affiliated Corporations Index, Hang Seng Mainland Composite Index, Hang Seng Composite Industry Index - Properties & Construction) and a constituent of Hang Seng Freefloat Index Series (including Hang Seng Freefloat Composite Index, Hang Seng Mainland Freefloat Index).
The Hang Seng China-Affiliated Corporations Index of locally listed companies backed by Chinese government entities rose 15.
The Hang Seng China-Affiliated Corporations Index, which traces red chips -- locally listed companies backed by mainland government entities -- also rose 21.
Lenovo was listed on the Stock Exchange of Hong Kong Limited in 1994 (stock code: 992) and is currently a constituent stock of the Hang Seng Index (HSI) and Hang Seng China-Affiliated Corporations Index (HKCCI).
The Hang Seng China-Affiliated Corporations Index, which tracks red chips, locally listed companies backed by Chinese government entities, shed 30.