Generally speaking, the characteristics of blue chips are large, stable and profitable (in the long run).

The typical example of China's A-shares is Vanke.

\x0d\\x0d\ Blue chip stocks refer to common stocks of companies that have a stable profit record, can regularly distribute relatively generous dividends, and are recognized as having excellent performance. They are also called "blue chip stocks".

\x0d\\x0d\　The term "blue chip" comes from the blue chips used in gambling equipment.

Blue chips usually have a higher monetary value.

The basic supporting conditions for a stock to become a blue chip stock are:\x0d\\x0d\　(1) During the depression period, the company can formulate plans and measures to ensure the company's development;\x0d\\x0d\　(2) During the prosperity period, the company can exert its maximum capabilities

Create profits;\x0d\\x0d\　 (3) During inflation, the company's actual surplus can remain unchanged or increase.

\x0d\\x0d\Blue chip stocks refer to large, traditional industrial stocks and financial stocks with long-term stable growth.

The characteristics of this type of listed companies are excellent performance, stable income, large share capital, generous dividends, stable stock price trends, and a good market image.

\x0d\\x0d\ In the overseas stock market, investors call the stocks of large companies that occupy an important dominant position in their industry, have excellent performance, active transactions, and generous dividends as blue chip stocks.

The term "blue chip" comes from Western casinos.

In Western casinos, there are two colors of chips. Blue chips are the most valuable, red chips are second, and white chips are the worst.

Investors apply this jargon to stocks.

Stocks such as General Motors Company, Exxon Petroleum Company and DuPont Chemical Company are all "blue chip stocks".

\x0d\\x0d\　Blue chip stocks are not static.

As the company's operating conditions change and its economic status rises and falls, the ranking of blue chip stocks will also change.

According to statistics from the famous "Forbes" magazine in the United States, among the 100 largest companies in 1917, only 43 company stocks are still among the blue-chip stocks. And the railroad stocks that were "the bluest" and the most prosperous in the industry have now completely lost their status.

Qualifications and Strength of Blue Chip Stocks.

\x0d\\x0d\ In the Hong Kong stock market, the most famous blue chip stock is "HSBC Holdings", one of the world's largest commercial banks.

"Cheung Kong Holdings" with Chinese capital background and "CITIC Pacific" with Chinese capital background are also among the blue chip stocks.

Although the stock market in mainland China has a short history, it has developed very rapidly, and some blue chip stocks have gradually emerged.

\x0d\\x0d\ Classification of blue chip stocks: \x0d\\x0d\ There are many blue chip stocks, which can be divided into: first-tier blue chip stocks, second-tier blue chip stocks, blue chip stocks, large-cap blue chip stocks, Chinese blue chip stocks; and blue chip stocks funds.\x0d\\x0d\

First-tier blue-chip stocks: \x0d\ There is no clear definition between first-tier and second-tier stocks, and what some people consider first-tier blue chip stocks are second-tier stocks in the eyes of others.

Generally speaking, the recognized first-line blue chips refer to stocks with stable performance, large outstanding shares and total equity, that is, larger weights. Generally speaking, the price of such stocks is not too high, but the public base is good.

This type of stocks can play a huge role in moving the whole body. These stocks mainly include: Yangtze Electric Power, Sinopec, China Unicom, Baosteel Co., Ltd., Anshan Iron and Steel Co., Ltd., Wuhan Iron and Steel Co., Ltd., Guangdong Expressway, Minsheng Bank, etc.

Generally speaking, the total share capital and circulating equity of second-tier blue chips are smaller than those of first-tier blue chips. The stock prices are generally higher and institutions prefer them. However, due to the higher prices, retail investors generally dare not touch them, such as: CIMC Group, Shanghai Airport, Yantai Wanwan

China, Suning Appliance, Yantian Port and other stocks.

600050,600028,600019,601398,601988,000002 600036 000060 600497 600030 etc\x0d\\x0d\　Second-tier blue chip stocks:\x0d\　The generally referred to second-tier blue chips in the A-share market refer to market value, industry status and popularity.

Slightly inferior to the first-tier blue-chip companies mentioned above, it is relative to several first-tier blue-chip companies.

For example, Shanghai Automobile, Wuliangye, ZTE, etc. In fact, these companies are also well-known leading companies in the industry (if viewed solely from within the industry, they are the first-line blue chips in their respective industries).

\x0d\\x0d\ 1. Steel Industry: Revaluation of Performance Growth Value \x0d\\x0d\ Chinese steel stocks represented by Baosteel Co., Ltd. deserve to receive reasonable market pricing.

Due to excessive discount rates or risk premiums, the current value of major steel listings has been significantly underestimated.

As the upstream and downstream of an industrial chain, there cannot always be a valuation "depression". A price-to-earnings ratio of 15 times for steel stocks is the international level.

\x0d\\x0d\ Key steel stocks with a price-earning ratio lower than 20 times: Baosteel Co., Ltd., Anshan Iron and Steel Co., Ltd., and Maanshan Iron and Steel Co., Ltd. \x0d\\x0d\

The sector valuation has been in place, but the valuation differences of individual stocks in the sector are more obvious. The valuations of Shanghai Port, Nanjing Port, and Chongqing Port are more than twice as high as those of Yingkou Port, Shenchiwan, and Yantian Port. When the sector valuation is in place,

Under such circumstances, security is an important factor to consider when we give our investment strategy for 2007.