Definition of Red-Chip Company

Financial Terms Beginning with R

What is a Red-Chip Company

A red-chip company is a publicly traded company that is incorporated outside of mainland China but conducts much of its business in mainland China. A red-chip company is listed on the Hong Kong Stock Exchange, which makes them an important investment for a foreign investor who wants to participate in the rapid growth of the Chinese economy.

Glossary of Terms and Phrases

A financial dictionary or glossary is an essential tool to better understand the meaning of a specialized term or phrase. It would obviously make life much easier if everyone spoke the same language and used the same financial terms and phrases but that is not realistic.

We learn new languages to communicate with each other, transact business globally and to appreciate other cultures. Global finance is a specialized language that if understood and mastered, it will provide benefits that help to decrease risk and improve investment returns. Financial literacy is the foundation of developing good investment strategies and sound decision making.

Related Investment Terms

A-Share (China)

Blue-Chip Stock

C-Share (China)

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