Chinese concept stocks refer to the collective name given by foreign investors to all Chinese stocks listed overseas.
Concept stocks refer to stocks with a certain special connotation, and this connotation is usually used as a stock selection and speculation theme, becoming a hot spot in the stock market. They have specific names, things, themes, etc., such as financial stocks, real estate stocks, asset restructuring stocks, brokerage stocks, Olympic theme stocks, insurance stocks, futures concepts, etc., which are all called concept stocks. To put it simply, concept stocks are early speculations on the growth of the operating performance of the industry in which the stock is located.
Chinese concept stocks are what foreign investors call all Chinese stocks listed overseas because they are optimistic about China's economic growth. Some people also say that Chinese concept stocks are “all lies fabricated to make people believe their lies.” Concept stocks are relative to performance stocks. Performance stocks need to be supported by good performance. Concept stocks rely on a certain theme such as the concept of asset restructuring, the concept of three links, etc. to support prices.
Chinese concept stocks, referred to as Chinese concept stocks, refer to the collective name given by foreign investors to all Chinese stocks listed overseas. They were born in the Hong Kong securities market in the 1990s. Chinese concept stocks need to be registered and listed overseas. The largest controlling shareholder or actual controller is directly or indirectly affiliated with a private enterprise or individual in mainland China. This is a way for Chinese companies to obtain overseas investment by listing overseas.
China concept stocks mainly include two categories: one is companies registered in mainland China and listed abroad; the other is companies registered abroad, but their main business and relationships are still in mainland China.
Development trend of Chinese concept stocks:
Chinese concept stocks were once a combination of “emerging huge market” and “disruptive innovation”. There are no "Indian concept stocks" or "Southeast Asian concept stocks" in the U.S. capital market, but there are "Chinese concept stocks". "Chinese concept stocks" were once considered the most dynamic companies outside the United States. According to statistics, in 2020, there were 39 Chinese concept stocks listed in the United States, and in the first half of 2021 alone, this number has reached 37.
There is every reason to believe that without the intervention of regulatory policies, the number of Chinese companies listed in the United States in 2021 will exceed that in 2020. However, following the Didi listing incident and the data security compliance review, Chinese technology companies are facing pressure from regulatory agencies and various lawsuits. Overseas listings after July 2021, especially listings in the United States, have been pressed on the pause button. On March 10, 2022, Chinese concept stocks plummeted, with 38 Chinese concept stocks falling by more than 10%, and many stocks hitting record low stock prices.