Wednesday, December 29, 2010

Red Chips

Red Chips are Chinese stocks which are listed on the Hong Kong Stock Exchange but are incorporated internationally, and carry the distinction from mainland stocks that foreigners are allowed to invest in them. Many Red Chips also issue A-shares that may trade on the Shenzhen or Shanghai stock exchanges, but only Chinese citizens can invest in them, resulting in a slight valuation differential - which has decreased since mainland Chinese were allowed to invest in Hong Kong stocks.

Synonyms: H-Shares, Hong Kong stocks

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