Do you know this?

Do you know this?
Jul 3, 2007 21:30
KEVIN0518 Points: Join Date: Mar 13, 2007 Status: offline	If you read the fincial news in the newspapers, you will often hear the blue chips an red chips. Do you kow what the blue and red chips are and where those two terms come from? In overseas stock market, the shares of those big companies who dominate the whole sector it belongs to and can bring much bonus for those investors are called Blue Chips. The blue chip irginates in the western gambling houses. Generally speaking, there are three kinds of chips in the gambling houses, blue, red and white. The blue chips is the most valuable. The white is the least valuable. Those investors use the blue chips to represent the share which can bring much bonus. That is the origination of the blue chips. For example, the shares of GM, ExxonMobil and Du Pont in US are all blue chips. In Hong Kong, the share of HSBC is the most famous blue chip.

Jul 3, 2007 21:30

KEVIN0518
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Join Date: Mar 13, 2007
Status: offline

If you read the fincial news in the newspapers, you will often hear the blue chips an red chips. Do you kow what the blue and red chips are and where those two terms come from?

In overseas stock market, the shares of those big companies who dominate the whole sector it belongs to and can bring much bonus for those investors are called Blue Chips. The blue chip irginates in the western gambling houses. Generally speaking, there are three kinds of chips in the gambling houses, blue, red and white. The blue chips is the most valuable. The white is the least valuable. Those investors use the blue chips to represent the share which can bring much bonus. That is the origination of the blue chips. For example, the shares of GM, ExxonMobil and Du Pont in US are all blue chips. In Hong Kong, the share of HSBC is the most famous blue chip.

Jul 3, 2007 21:32

KEVIN0518
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Join Date: Mar 13, 2007
Status: Offline

The red chips was born in the Hong Kong stock market in 1990s. Sometimes the PRC is called Red China in international community. Therefore, those international and Hong Kong investors name the shares of mainland companies which register abroad and go public in Hong Kong as the red chips. To be specific, there are two ways to define the red chips. First, defined by the business the company deal with. If a company mainly does its business in mainland and its profit also comes from mainland, the share of the company is called red chips. Of course, it must be a company which register abroad and go public in Hong Kong. Second, defined by the rights and benefits of the stockholders of the company. If most of the benefits of the company and the stockholders are from mainland, the share of the company is called red chips. Also the company must register abroad and go public in Hong Kong.

Jul 5, 2007 23:18	#2
FRANKENSTEIN Points: Join Date: Nov 29, 2004 Status: Offline	In the past, I just heard those two terms: blue and red chips. However, I did not know what they were. Now, I understant them. Thank for your inrfo, Kevin.

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