Red chip stocks (Chinese:红筹股;pinyin:hóng chóu gǔ;Jyutping:hung4 chau4 gu2) are the stocks ofmainland China companiesincorporated outside mainland China (oftenHong Kong or aBritish Overseas Territory) andlisted in theStock Exchange of Hong Kong. It refers tobusinesses 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 combinesblue chip stocks with "red" representing thesocialist economic philosophy of the People's Republic of China.[1]
TheHang Seng China-Affiliated Corporations Index (HSCCI) is astock market index of 25 red chip companies.
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As of 30 September 2020[update], there were 267 red chip companies, including:[2]
