What do red chips and blue chips mean! Difference between the two
blue chip refers to the common stock of a company with a stable earnings record, which can regularly distribute generous dividends and is recognized as a company with excellent performance, also known as "blue chip".
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:
(1) During the depression, the company can work out plans and measures to ensure the company's development;
(2) During the prosperous period, the company can exert its maximum ability to create profits;
(3) During the inflation period, the company's actual surplus can remain unchanged or increase.
Blue-chip stocks refer 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.
In overseas stock markets, 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".
blue chips 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.
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.
Classification of blue chips:
There are many blue chips, which can be divided into: first-tier blue chips, second-tier blue chips, blue chips with excellent performance, large-cap blue chips and China blue chips; There are also blue chip funds.
First-line blue chips:
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. Second-tier blue chips, such as 65, 628, 619, 61398, 61988, 2, 636, 6, 6497, 63, etc.
Generally speaking, the second-tier blue chips in the A-share market refer to the first-tier blue chips that are slightly inferior to those mentioned above in market value, industry position and popularity. 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).
I. steel industry: revaluation of performance growth value
China steel stocks represented by baoshan iron & steel deserve to 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.
key steel stocks with a P/E ratio of less than 2 times: baoshan iron & steel, Anshan Iron and Steel Co., Ltd. and Maanshan Iron and Steel Co., Ltd.
Second, the main line of investment: undervaluation+asset injection
Although the sector valuation has been put in place, there are obvious differences in the valuation of individual stocks in the sector. The valuations of Shanghai Port, Nanjing Port and Chongqing Port are more than twice as high as those of Yingkou Port, Shenchiwan Port and Yantian 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.
key port stocks with a P/E ratio of less than 2 times: Yantian Port, Shenchiwan Port and Yingkou Port
Third, coal industry: opportunities brought by extension expansion
In terms of the choice of investment targets, we suggest giving priority to enterprises with core competitiveness and paying more attention to the "bottom-up" strategy. 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.
key coal stocks with a P/E ratio of less than 2 times: Lanhuakechuang, Xishan Coal and Electricity, kailuan shares, Guoyang Xinneng, Hengyuan Coal and Electricity, Jinniu Energy, Yanzhou Coal, Lu 'an Huaneng, Pingmei Tianan and Shenhuo
Fourth, highway industry: long-term stable growth, paying attention to value revaluation
China's highway industry will maintain a steady growth trend in 27 and even for a long time to come. 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.
key highway stocks with a P/E ratio of less than 2 times: Jiangxi-Guangdong Expressway, Wantong Expressway, Zhongyuan Expressway and Modern Investment
Blue-chip stocks with excellent performance:
At present, everyone is talking about new blue-chip stocks with excellent performance, and they think that this sector will be the first choice as open-end funds are about to enter the market. It should be said that this analysis is reasonable. 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.
blue chips in China:
Haitong Securities gave 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, etc. Kangyuan Pharmaceutical, Jiangzhong Pharmaceutical, 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, Pudong Development. 72 stocks including Guidong Electric Power, Oriental Pearl, 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.
Blue-chip market:
The term "blue-chip" originated from casinos: large denomination chips in casinos in various countries are generally blue, which is 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; Only Lloyd's of Britain can bear the reputation of "blue chip". The concept of blue chip
red chip
red chip was born in the Hong Kong stock market in the early 199s. The People's Republic of China is sometimes called "Red China" internationally. Accordingly, Hong Kong and international investors call those stocks with Chinese mainland concept registered overseas and listed in Hong Kong "red chips". In fact, it refers to the shares issued by companies whose largest controlling interest is directly or indirectly affiliated to the relevant departments or enterprises in mainland China and listed on the Hong Kong Stock Exchange. Chinese-funded enterprises listed in Hong Kong. Because people describe China as a red China and her national flag is a five-star red flag, the stocks issued by listed companies associated with China are called red chips. This is an image of the name. At the same time, this division is also derived from the allusion of the concept of blue chip. Because Americans bet on cards, blue chips are the highest, red chips are medium and white chips are the lowest. Later, people called the most powerful and active stocks in the stock market blue chips. Blue chip stocks have almost become synonymous with blue chip stocks. Some red chips with good development prospects have been selected into the constituent stocks of the Hang Seng Index, so they also have the status of phoenix. With the mainland listing in Hong Kong one after another, some people have made a more rigorous definition of red chips, that is, Chinese-funded enterprises that are bound by the laws of Hong Kong must have their parent companies registered in Hong Kong, while companies registered in the Mainland are only enterprises that borrow funds from the Hong Kong capital market, also known as "H shares". However, red chips are still widely used as the names of Chinese-funded enterprises listed in Hong Kong. The most famous red chips in Hong Kong are CITIC Pacific, Yuehai Investment, China Merchants Haihong, Shanghai Industry, and recently listed Shenye Holdings and Beijing Holdings.
The saying of red chips only applies to the Hong Kong stock market. There are still some disputes about the specific definition of red chips. There are two main viewpoints. One view is that it should be differentiated according to the scope of business. If a listed company's main business is in Chinese mainland, and most of its profits come from this business, then the stock registered outside China and listed in Hong Kong is a red chip. The red chip index compiled by Bloomberg Information, an international information company, is selected according to this standard. Another view is that it should be divided according to the amount of rights and interests. If most of the shareholders' equity of a listed company comes directly from Chinese mainland or has a mainland background, that is, it is controlled by Chinese capital, then the stock registered outside China and listed in Hong Kong is among the red chips. In April 1997, when the Hang Seng Index Service Company started to compile the Hang Seng Red Chip Index, it was according to this standard that the red chips were defined. Usually, the stocks of these two types of companies are regarded as red chips by investors.
The early red chips were mainly formed after some Chinese companies acquired small and medium-sized listed companies in Hong Kong, such as CITIC Pacific. The emergence of red chips in recent years is mainly due to the reorganization of window companies in Hong Kong by some mainland provinces and cities and their listing in Hong Kong, such as "Shanghai Industry" and "Beijing Holding". Red chips have become an important channel for mainland enterprises to enter the international capital market except B shares and H shares. The rise and development of red chips also has a very positive impact on the Hong Kong stock market. From 1993 to the end of June 1997, red chip companies raised $11.55 billion through initial public offering and capital increase and rights issue. From January to June 1997, the total amount of funds raised in the Hong Kong stock market was about HK$ 143.3 billion, of which red chips accounted for 23.8%.
Later, some people made a stricter definition of red chips: only Chinese-funded enterprises whose parent companies are registered in Hong Kong, bound by Hong Kong laws and listed in Hong Kong are called red chips. Usually, the above-mentioned stocks are regarded as red chips by investors.
H shares refer to foreign-funded shares registered in mainland China and listed in HongKong. "H" is the initials of Hong Kong English.
It can be seen that red chips and H shares are listed in Hong Kong, and their fundamental differences are as follows: red chips are registered and managed overseas and belong to Hong Kong companies or overseas companies; H shares are registered and managed in the Mainland and belong to Chinese mainland companies. The main differences between red chips and H shares closely related to investment decisions are:
All red chips can be listed and circulated, while some state-owned H shares cannot be listed and circulated; When issuing new shares in the future, red chips may have more flexibility and space, while the risk of issuing H shares may be higher and the time may be relatively long.
The stock options held by the management of red chips may be the same as those of overseas companies, and the management can enjoy all the rights and interests of all the stock options; However, H shares are different. The management does not really own the stock options of listed companies, even if it does, it is a simulated stock option.
when issuing convertible bonds and other bonds, red chip companies do not need to meet the legal procedures and conditions in the mainland, but H shares need the legal procedures and conditions in the mainland and be approved by the relevant state departments.
In addition, the stocks of large and medium-sized companies with certain influence, good performance, active transactions and slightly good dividends in their respective industries are called red chips. The word "red chips" originated from western casinos. In western casinos, there are three colors of chips, of which blue chips are the most valuable, followed by red chips, and white chips are the worst.