The concept of red chips was born in the Hong Kong stock market in the early 1990s. People's Republic of China (PRC) is sometimes called "Red China" internationally. Therefore, Hong Kong and international investors refer to those stocks with Chinese mainland concept registered overseas and listed in Hong Kong as "red chips". In fact, it refers to the shares issued by companies whose largest controlling interest is directly or indirectly affiliated to relevant departments or enterprises in Chinese mainland and listed on the Hong Kong Stock Exchange. Chinese 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 related to China are called red chips. This is an image name. At the same time, this division also comes from the allusion of the concept of blue chip. Because Americans gamble, blue chips are the highest, red chips are the middle, and white chips are the lowest. Later, people called the most powerful and active stocks in the stock market blue chips. Blue chip has almost become synonymous with blue chip. Some red chips with good development prospects have been selected as constituents of the Hang Seng Index, so they also have the status of Phoenix. With the mainland listing in Hong Kong, some people have made a more rigorous definition of red chips, that is, the parent company of Chinese-funded enterprises bound by Hong Kong laws must be registered in Hong Kong, while the companies registered in the mainland are only enterprises that borrow funds from the Hong Kong capital market, which is also commonly known as "H shares". However, red chips are still widely used as the names of Chinese companies 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. According to the nature of the relevant contracts, options can be divided into call options, put options and two-way options. 1. Call option. It means that the option buyer has the right to buy goods or futures contracts from the option seller at a certain price within a specified time, but does not undertake the obligation to buy. Call option is also called long option, deferred option and call option. Investors are generally optimistic about buying call options when the price of gold rises, while sellers expect the price to fall. 2. Put option. It means that the option buyer has the right to sell goods or futures to the option seller at a certain price within a specified time, but does not undertake the obligation to sell. Put option is also called put option, put option and put option. In the transaction of put options, investors who buy put options are optimistic that the price will fall, so they buy put options; The seller of a put option expects the price to rise or not. 3. Two-way option, also known as "double option". It means that the option buyer has the right to buy and sell commodities and futures at the price agreed in the contract within a certain period of time after paying a certain royalty to the option seller. Investors buy call options and put options at the same time, which is an investment strategy they adopt when they are uncertain about the future price. For people who buy two-way options, as long as the price fluctuates, they can exercise their rights and profit from it. But generally speaking, the seller of this option firmly believes that the price will not change much, so he is willing to sell this right and get a certain royalty income.