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Red Chip


Red chips stocks (simplified Chinese: 红筹股; traditional Chinese: 紅籌股; pinyin: hóngchóugǔ) are the stocks of mainland China companies incorporated outside mainland China and listed in Hong Kong. These businesses are based in mainland China and controlled, either directly or indirectly, by the central, provincial or municipal governments of the Peoples' Republic of China but listed in Hong Kong to allow overseas investment in the companies.

The term was coined by Hong Kong economist Alex Tang in 1992 and is a play on term stocks with the word "red" representing the Peoples' Republic of China and the Chinese Communist Party.

The "Hang Seng China-Affiliated Corporations Index" covers prices of red chips. As of February 2015, there are 25 red chips that compose this index (simplified Chinese: 恒生香港中资企业成分股; traditional Chinese: 恆生香港中資企業成份股; pinyin: héngshēng Xiānggǎng zhōngzī qǐyè chéngfèn):


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