China Concepts Stock
The stock of a company whose assets or earnings have significant activities in China. China concepts stocks will trade on different stock exchanges such as the Hong Kong exchange, under the name of H-Shares or "red chip" stocks. The People's Republic of China is undergoing major financial transformation, so many leading mainland-based companies chose to list themselves elsewhere to gain access to investor capital as quickly as possible.
The China concepts stocks are considered one of the purest investment plays on China's long-term economic growth outside of direct mainland investment. Investopedia Says:
Beginning in 1980, the PRC (Peoples Republic of China) started opening up to joint ventures with foreign companies. China is developing capital markets of its own to attract foreign funds; they have even taken part in the some of the biggest initial public offerings in history as they transition large state-run businesses into publicly-traded companies. Related Terms:
A-Shares
B-Shares
China Investment Corporation - CIC
Chinese Depositary Receipt - CDR
Chinese Wall
H-Shares
Hang Seng Index - HSI
Red Chip |