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[quote=KEVIN0518,238414]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.[/quote]
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