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 PS9.1m plan includes 12 new red-chip crossings designed to better link booming Ancoats with the Northern Quarter, and the planting of 70 trees along the central reservation.
The funds invest in everything from the health care sector to sports, property, overseas projects, and "red-chip return concepts".
Local people can invest in red-chip stocks and H stocks in Hong Kong and Macao bourses, via re-consignment with domestic securities firms.
As Dublin chief executive John Costello described it at the launch, this is a positively "red-chip" deal.
Hong Kong analyst Shamus Mok said the personnel reshuffle of red-chip companies in Hong Kong indicated the Chinese premier's administration is trying to improve management capability and credibility in the territory.
''Financial conditions for other international trust and investment corporations and red-chip companies (government-backed enterprises) can be expected to be tightened after this latest revision of expectations,'' he said.
"IPOs the Likely Target of New Red-Chip Rules." 13d June, internet edition.
As the only red-chip company of Sinopec currently listed in Hong Kong, Sinopec Kantons Holdings Limited is a key representation of Sinopec's diversified capital.
Unable to invest in Chinese securities directly, many domestic insurance firms have switched to invest in red-chip shares and Chinese state-enterprises shares on the Hong Kong bourse.
Presently, local people can invest in red-chip stocks and H stocks on Hong Kong and Macao bourses via re-consignment with domestic securities firms.