What is a blue-chip stock?

Generally speaking, the characteristics of blue chips are big, stable and profitable (in the long run). The typical A-share in China is Vanke. \ xd \ xd \ blue chip refers to the common stock of a company with stable earnings record, which can distribute generous dividends regularly and is recognized as excellent performance, also known as "blue chip". \ xd \ xd \ The term "blue chips" comes from the blue chips used in gambling tools. Blue chips usually have a high monetary value. The basic supporting conditions for a stock to become a blue chip are: \ xd \ xd \ (1) During the depression, the company can work out plans and measures to ensure its development; \xd\\xd\ (2) During the prosperous period, the company can exert its greatest ability to create profits; \xd\\xd\ (3) During the inflation period, the company's actual surplus can remain unchanged or increase. \ xd \ xd \ blue chip refers to large-scale, traditional industrial stocks and financial stocks with long-term and stable growth. Such listed companies are characterized by excellent performance, stable income, large share capital, generous dividends, stable stock price trend and good market image. \xd\\xd\ In the overseas stock market, investors refer to the stocks of large companies that occupy an important dominant position in their respective industries, with excellent performance, active transactions and generous dividends as blue chips. The word "blue chip" originated from western casinos. In western casinos, there are two colors of chips, of which blue chips are the most valuable, followed by red chips and white chips are the worst. Investors apply these jargon to stocks. Stocks such as General Motors, Exxon Petroleum and DuPont Chemical Company are all "blue chips". \ xd \ xd \ blue chip stocks are not static. With the change of the company's operating conditions and the rise and fall of its economic status, the ranking of blue chips will also change. According to the statistics of the famous American Forbes magazine, among the 1 largest companies in 1917, only 43 companies are still among the blue-chip stocks, and the railway stocks, which were the "bluest" and the most prosperous in the industry, have completely lost their qualifications and strength in being selected as blue-chip stocks. \ xd \ xd \ In the Hong Kong stock market, the most famous blue chip is HSBC Holdings, one of the largest commercial banks in the world. "Changjiang Industry" with Chinese background and "CITIC Pacific" with Chinese background are also among the blue chips. Although Chinese mainland's stock market has a short history, it has developed very rapidly, and some blue-chip stocks have gradually emerged. \ xd \ xd \ Classification of blue chips: \ xd \ xd \ There are many blue chips, which can be divided into: first-line blue chips, second-line blue chips, blue chips with excellent performance, large-cap blue chips and China blue chips; There are also blue chip funds. \xd\ xd \ First-line blue chips: \ xd \ First-line and second-line are not clearly defined, and what some people think of as first-line blue chips is second-line in the eyes of others. Generally speaking, the recognized first-line blue chips refer to stocks with stable performance, large liquidity and total share capital, that is, stocks with greater weight. Generally speaking, the price of such stocks is not too high, but the mass base is good. This kind of stocks can play the role of "four or two", which will affect the whole body. These stocks mainly include: Changjiang Electric Power, China Petrochemical, China Unicom, baoshan iron & steel, Angang New Rolling, Wuhan Iron and Steel Co., Ltd., Guangdong Expressway and Minsheng Bank. Generally speaking, the total share capital and circulating share capital of second-tier blue chips are smaller than those of first-tier blue chips, and the share price is generally higher, which is preferred by institutions. However, due to the higher price, retail investors generally dare not touch them, such as CIMC, Shanghai Airport, yantai wanhua, Suning Appliance, Yantian Port and other stocks. 65, 628, 619, 61398, 61988, 2, 636, 6, 6497, 63, etc. \ xd \ xd \ Second-tier blue chips: \ xd \ Generally speaking, the second-tier blue chips in the A-share market refer to the market value and market value. For example, Shanghai Automobile, Wuliangye, ZTE, etc., in fact, these companies are also well-known leading enterprises within the industry (if viewed from within the industry alone, they are the first-line blue chips in their respective industries). \xd\\xd\ 1. Steel industry: Revaluation of performance growth value \xd\\xd\ China steel stocks represented by baoshan iron & steel should be reasonably priced in the market. Due to the excessively high discount rate or risk premium, the listed value of major steel products is obviously underestimated. As the upstream and downstream of an industrial chain, it is impossible to have a valuation "depression" forever, and the price-earnings ratio of steel stocks reaching 15 times is the international level. \xd\\xd\ Key steel stocks with price-earnings ratio less than 2 times: baoshan iron & steel, Angang and Maanshan Iron and Steel Co. \xd\\xd\ 2. Port industry: investment mainline: undervaluation+asset injection \xd\\xd\ Although the sector valuation has been put in place, there are obvious differences in the valuation of individual stocks in the sector, especially in Shanghai Port and Nanjing Port. At the same time, in the market environment where the whole industry has a growth rate of 2%, it can have more port resources and occupy a more active market position in the future market competition, so companies with possible asset acquisition are also our concern. \xd\\xd\ Key port stocks with P/E ratio less than 2 times: Yantian Port, Shenchiwan Port and Yingkou Port \ xd \ xd \ III. Coal industry: opportunities brought by expansion \xd\\xd\ From the choice of investment targets, we suggest giving priority to investing in enterprises with core competitiveness and paying more attention to "bottom-up". The logical main line is: the price remains high-the increase in production capacity can be fully released-the transportation is loose-and the enterprises with little cost impact are the most worthy of investment. It is expected that asset value injection and overall listing will be important investment themes and opportunities for the whole coal industry in 27-8. \xd\\xd\ Key coal stocks with P/E ratio less than 2 times: Orchid Science and Technology, Xishan Coal and Electricity, kailuan shares, Guoyang Xinneng, Hengyuan Coal and Electricity, Jinniu Energy, Yanzhou Coal, Lu 'an Huaneng, Pingmei Tianan, Shenhuo Shares \xd\\xd\ IV. Highway industry: long-term stable growth, paying attention to value revaluation xd. The sustained and steady growth of the national economy, the network effect brought by the gradual improvement of road network construction, the fall of oil prices and the increase of traffic volume brought by overseas investment have all created a good external environment and opportunities for the stable development of the whole industry. \xd\\xd\ Key highway stocks with a P/E ratio of less than 2 times: Jiangxi-Guangdong Expressway, Wantong Expressway, Zhongyuan Expressway, Modern Investment \ xd \ xd \ blue-chip stocks with excellent performance: \ xd \ xd \ At present, everyone is talking about new blue-chip stocks with excellent performance, and thinks that this sector will be the first choice with the upcoming entry of open-end funds. According to the principle that the wind and water turn in the stock market, after the performance of technology stocks, large-cap stocks of state-owned enterprises and restructured stocks, it is also the turn of blue-chip stocks with excellent performance. But what is a blue chip with excellent performance? Personally, I think blue-chip stocks with excellent performance must have a stable growth besides a large market value and good performance. In addition, blue-chip stocks must stand the test of time. \xd\\xd\ China blue chip: \xd\ Haitong Securities granted China Software, Neusoft, Salt Lake Potash, ST Jianfeng, Chengxing, Yuntianhua, Liuhua, Wuliangye, Shunxin Agriculture, CSG A, Jidong Cement, Conch Profile, Beixin Building Materials, China Glass Fiber, Gree Electric, Fuyao Glass, S Sanxing, Qingdao Haier, Xoceco Electronics, Qinchuan Development, Xishan Coal and Electricity, Orchid Science and Technology Innovation. Faw xiali, Yutong Bus, Shanghai Automobile, S Jiangzuan, Times New Materials, Shuangliang Shares, Jinxi Axle, Longyuan Construction, Sinoma International, ZTE, China Unicom, Huasheng Tiancheng, Shanghai Airport, Yiyang Xintong, Daqin Railway, Yantian Port, Farah Electronics, Hengrui Pharma, Huahai Pharmaceutical, Hengdian Dongci, Shanghai Pudong Development Bank, Minsheng Bank and Shanghai Electric Power. 72 shares including Zoomlion, Liugong, Shantui, Jiangnan Heavy Industry, Yueyang Paper, Qixia Construction, Chinese Enterprise, Tianchuang Real Estate, Shimao, Guangzhou Shipyard International, Shanghai Electromechanical, Xuji Electric, Pinggao Electric, Taihao Technology, and Dongfang Electric are rated for buying. \xd\\xd\ blue chip: \xd\ blue chip "originated from casinos: large denomination chips in casinos in various countries are generally blue, which extended to the stock market, resulting in the term" blue chip ". From the original point of view, blue chip refers to listed companies with large share capital and market value, but not all large-cap stocks can be called blue chip, so it is difficult to set an exact standard for blue chip. From the experience of various countries, those companies with large market value, stable performance, leading position in the industry and considerable influence on their securities markets-such as Cheung Kong, Hutchison Whampoa; IBM； in the United States; Lloyd's of the United Kingdom, etc., can bear the reputation of "blue chip", and the blue chip with large market value is blue chip.