What are blue chip stocks?

What are the high-quality blue chip stocks?

Investors who often speculate in stocks will encounter the term blue chip stocks.

In the stock market, investors refer to 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.

Blue-chip stocks are company stocks that have good management and stable profit-making capabilities and return returns to shareholders year after year.

This type of company has the ability to earn profits during both good and bad times in the industry, with less risk.

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

The term "blue chip" comes from Western casinos.

In Western casinos, there are three colors of chips. Blue chips are the most valuable, red chips are the second most valuable, and white chips are the worst. Investors apply these jargons to stocks.

The nature of blue chip stocks has excellent performance, stable income, large equity scale, generous dividends, stable stock price trend, and good market image.

(1) During depression, the company can formulate plans and measures to ensure the company's development; (2) During prosperity, the company can maximize its ability to create profits; (3) During inflation, the company's actual profitability remains unchanged or increases.

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 American magazine "Forbes", among the 100 largest companies in 1917 (the year of Dingxin), only 43 companies were still among the blue-chip stocks by 2010. The railways, which were the "bluest" and the most prosperous industry at the time, were

Stocks have now completely lost their qualifications and strength to be selected as blue chip stocks.

Blue chip stocks have a larger weighting in the broader market.

Classification of blue chip stocks 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; and blue chip stocks.

There is no clear definition of first-tier and second-tier blue chip stocks, and what some people consider to be 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 make all the difference and affect the whole body. The main stocks of this type are: Industrial and Commercial Bank of China (4.620, 0.00, 0.00%), Sinopec (5.850, 0.01, 0.17%), Kweichow Moutai (351.500,

1.29, 0.37%), Minsheng Bank (9.110, 0.01, 0.11%), Vanke, Ping An Bank (9.400, 0.00, 0.00%), Wuliangye, Shanghai Pudong Development Bank (16.820, 0.07, 0.42%), Poly Real Estate (9.520, 0.00,

0.00%), Shandong Gold (37.520, -0.22, -0.58%), Daqin Railway (7.120, -0.02, -0.28%), etc.

Second-tier blue-chip stocks Generally speaking, second-tier blue chips in the A-share market refer to first-tier blue-chip companies that are slightly inferior to the above-mentioned ones in terms of market value, industry status, and popularity. They are relative to several first-tier blue chips.

For example, Conch Cement (20.980, 0.04, 0.19%), Yantai Wanhua, Sany Heavy Industry (7.450, -0.02, -0.27%), Gezhouba (11.450, -0.07, -0.61%), Guanghui Group, and Zoomlion Heavy Industry

(4.790, 0.00, 0.00%), Gree Electric (26.900, 0.00, 0.00%), Qingdao Haier (10.190, 0.01, 0.10%), Midea Electric, Suning Electric, Yunnan Baiyao (76.940, 0.00, 0.00%), Changyu,

ZTE (15.590, 0.08, 0.52%), etc. In fact, these companies are also well-known leading companies in the industry (if you look at the industry alone, they are the first-line blue chips in their respective industries).

Blue-chip stocks Blue-chip stocks are a word derived from comparison among blue-chip stocks. They are company stocks that have been recognized by the industry as having excellent performance, generous dividends, and maintaining stable growth. "Blue-chip stocks" are selected from the perspective of performance rankings.

individual stocks.

Large-cap blue-chip stocks Blue-chip stocks refer to listed companies with larger share capital and market capitalization, but not all large-cap stocks can be called blue-chip stocks. Therefore, it is difficult to set an exact standard for blue-chip stocks.

Judging from the experience of various countries, those companies with large market capitalization, stable performance, leading positions in the industry, and can have a considerable impact on the securities markets in which they are located - such as Hong Kong's Cheung Kong and Hutchison Whampoa; IBM in the United States; IBM in the United Kingdom;

Lloyd's of London and others can take on the reputation of "blue chip stocks".

Those with a large market capitalization are blue chips.

There are also some blue chips in the Chinese market, such as: Industrial and Commercial Bank of China, PetroChina (8.390, 0.00, 0.00%), and Sinopec.