Stocks of mainland China companies incorporated outside mainland China and listed in Hong Kong.

Red Chip (Wikipedia)

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 blue chip stocks with the word "red" representing the Peoples' Republic of China and the Chinese Communist Party.

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