Blue chip refers to the common stock of a company that has a stable profit record, can regularly pay rich dividends and is recognized as outstanding performance, also known as "blue chip".
The word "blue chip" comes from the blue chip used in gambling tools. Blue chips usually have a high monetary value. The basic supporting conditions for stocks to become blue-chip stocks are:
(1) During the depression, the company can make plans and measures to ensure the company's development;
(2) In the prosperous period, the company can exert its greatest ability to create profits;
(3) During the period of inflation, the company's actual surplus can remain unchanged or increase.
Blue-chip stocks refer to large-scale and traditional industrial stocks and financial stocks with long-term and stable growth. This kind of listed company is characterized by excellent performance, stable income, large share capital, rich dividends, stable stock price trend and good market image.
In overseas stock markets, investors refer to the stocks of large companies that occupy an important leading position in their respective industries, with excellent performance, active trading and rich dividends as blue chips. The term "blue chip" comes from western casinos. In western casinos, there are two colors of chips, among which blue chips are the most valuable, followed by red chips and white chips are the worst. Investors apply these jargon to stocks. General Motors, Exxon Petroleum and DuPont Chemical Company are all "blue chips".
Blue-chip stocks are not static. With the change of the company's operating conditions and the rise and fall of its economic status, the ranking of blue chips will also change. According to the statistics of the famous American Forbes magazine, only 43 of the largest companies in 2007 19 100 are still among the blue chips, and as the "bluest" and most prosperous railway stocks in the industry, they have completely lost the qualification and strength to be selected as blue chips.
In Hong Kong stock market, the most famous blue chip is HSBC Holdings, one of the largest commercial banks in the world. Changjiang Industry with China background and CITIC Pacific with China background are also among the blue chips. Although the history of Chinese mainland's stock market is not long, it has developed very rapidly, and some blue-chip stocks have gradually appeared.
Classification of blue chip stocks:
There are many blue chips, which are divided into: first-line blue chips, second-line blue chips, excellent blue chips, large-scale blue chips and China blue chips; There are also blue chip funds.
First-line blue chips:
There is no clear distinction between the first and second lines. Some people think that the first-line blue-chip stocks are second-line in the eyes of others. Generally speaking, the recognized first-line blue chips refer to stocks with stable performance, large liquidity and large total share capital, that is, stocks with greater weight. Generally speaking, the price of such stocks is not too high, but the mass base is good. This kind of stock can play the role of "four or two", which will affect the whole body. These stocks mainly include: Changjiang Power, China Petrochemical, China Unicom, baoshan iron & steel, Angang New Rolling, WISCO, Guangdong Expressway and Minsheng Bank. Generally speaking, the total share capital and circulating share capital of secondary blue chips are smaller than those of primary blue chips, and their share prices are generally higher, which is favored by institutions. However, due to high prices, retail investors generally dare not touch them, such as CIMC, Shanghai Airport, yantai wanhua, Suning Appliance, Yantian Port and other stocks. 600050, 600028, 6000 19, 60 1398, 60 1988, 0000002 600036 0060 600497 600030, etc.
Second-tier blue chip:
Generally speaking, the second-tier blue chips in the A-share market are slightly inferior to the first-tier blue chips mentioned above in terms of market value, industry status and popularity, which is relative to several first-tier blue chips. For example, Shanghai Automobile, Wuliangye and ZTE. In fact, these companies are also well-known leading enterprises in the industry (if viewed from within the industry alone, they are the first-line blue chips in their respective industries).
I steel industry: revaluation of performance growth value
China steel stocks represented by Baosteel deserve reasonable market pricing. Due to the high discount rate or risk premium, the listed value of major steel products is obviously underestimated. As the upstream and downstream of an industrial chain, it is impossible to have a valuation "depression" forever, and the price-earnings ratio of steel stocks reaches 15 times, which is the international level.
Key steel stocks with P/E ratio less than 20 times: baoshan iron & steel, Angang and Maanshan Iron and Steel Co., Ltd.
Second, the port industry: the main line of investment: low valuation+asset injection
Although the sector valuation has been put in place, there are obvious differences in the valuation of individual stocks in the sector. The valuations of Shanghai Port, Nanjing Port and Chongqing Port are more than twice as high as those of Yingkou Port, Shenchiwan Port and Yantian Port. With the industry valuation in place, security is an important factor that we should consider when giving the investment strategy in 2007. At the same time, in the market environment of 20% growth rate of the whole industry, we can have more port resources and occupy a more active market position in the future market competition, so companies that may acquire assets are also our concern.
Key port stocks below 20 times P/E ratio: Yantian Port, Shenchiwan Port and Yingkou Port.
Third, the coal industry: opportunities brought about by the expansion
From the choice of investment targets, we suggest giving priority to investing in enterprises with core competitiveness and paying more attention to the "bottom-up" strategy. The logical main line is: the price remains high-the increase in production capacity can be fully released-the transportation is loose-and the enterprises with little cost impact are the most worthy of investment. It is predicted that asset value injection and overall listing will be important investment themes and opportunities for the whole coal industry in 2007-08.
Key coal stocks with P/E ratio less than 20 times: Orchid Technology, Xishan Coal and Electricity, kailuan shares, Yangguo Xinneng, Hengyuan Coal and Electricity, Jinniu Energy, Yanzhou Coal, Lu 'an Huaneng, Pingmei Tianan and Shenhuo.
Fourth, the highway industry: long-term steady growth pays attention to value revaluation.
In 2007 and for a long time to come, China's expressway industry will maintain a steady growth trend. The sustained and steady growth of the national economy, the network effect brought by the gradual improvement of road network construction, the drop in oil prices and the increase in traffic volume brought by overseas investment have all created a good external environment and opportunities for the stable development of the whole industry.
Key highway stocks with P/E ratio less than 20 times: Jiangxi-Guangdong Expressway, Anhui-Nantong Expressway, Zhongyuan Expressway and Hyundai Investment.
Blue chip with excellent performance:
At present, everyone is talking about new blue-chip stocks with excellent performance, and thinks that this sector will be the first choice as open-end funds are about to enter the market. It should be said that this analysis is reasonable. According to the principle that the wind and water turn in the stock market, after the performance of technology stocks, large-cap stocks of state-owned enterprises and restructured stocks, it is also the turn of blue-chip stocks with excellent performance. But what is a blue chip with outstanding performance? Personally, blue-chip stocks with outstanding performance must have steady growth in addition to large market value and good performance. In addition, blue-chip stocks must stand the test of time.
China blue chip:
Haitong Securities awarded China Software, Neusoft, Salt Lake Potash, ST Jianfeng, Chengxing, Yuntianhua, Liu Hua, Wuliangye, Shunxin Agriculture, CSG A, Jidong Cement, Conch Profile, Beixin Building Materials, china glass Fiber, Gree Electric, Fuyao Glass, Sanxing, Qingdao Haier, Xoceco Electronics, Qinchuan Development, Xishan Coal and Electricity and Orchid Kechuang. FAW Li Xia, Yutong Bus, Shanghai Automobile, S Jiangzuan, Times New Materials, Liang Shuang, Jinxi Axle, Long Yuan Construction, Sinoma International, ZTE, China Unicom, Huasheng Tiancheng, Shanghai Airport, Yiyang ICT, Daqin Railway, Yantian Port, Farah Electronics, Hengrui Pharma, Huahai Pharmaceutical, Hengdian Dongci, Shanghai Pudong Development Bank, Minsheng Bank and Shanghai Electric Power. 72 stocks, including Zoomlion, Liugong, Shantui, Jiangnan Heavy Industry, Yueyang Paper, Qixia Construction, Zhongqi, Tianchuang Real Estate, Shimao, Guangzhou Shipyard International, Shanghai Electromechanical, Xuji Electric, Gao Ping Electric, Taihao Technology and Dongfang Electric, were rated as Buy.
Blue chip market:
The word "blue chip" originated in casinos: the large denomination chips in casinos in various countries are generally blue, which is extended to the stock market and produces the word "blue chip". From the initial point of view, blue chips refer to listed companies with relatively large share capital and market value, but not all large-cap stocks can be called blue chips, so it is difficult to set an exact standard for blue chips. From the experience of various countries, those companies with large market value, stable performance, leading industry and considerable influence on their own securities markets, such as Changjiang Industry and Hutchison Whampoa; IBM is in America; Lloyd's of England, etc. , can bear the reputation of "blue chip", blue chip with large market value is blue chip.
red chip stocks
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.
The term "red chips" only applies to the Hong Kong stock market. There are still some disputes about the specific definition of red chips. There are two main views. One view is that it should be distinguished according to the scope of business. If a listed company's main business is in Chinese mainland, and most of its profits come from this business, then the shares registered outside China and listed in Hong Kong are red chips. The red chip index compiled by Bloomberg Information, an international information company, was selected according to this standard. Another view is that it should be divided according to the number of rights and interests. If most of the shareholders' equity of a listed company comes directly from Chinese mainland or has a mainland background, that is, it is controlled by Chinese capital, then this stock registered outside China and listed in Hong Kong is among the red chips. 1In April, 1997, when Hang Seng Index Service Company started to compile the Hang Seng Red Chip Index, it was according to this standard that red chips were defined. Usually, the stocks of these two companies are regarded as red chips by investors.
The early red chips were mainly formed after some China companies acquired small and medium-sized listed companies in Hong Kong, such as CITIC Pacific. The emergence of red chips in recent years is mainly due to the reorganization of window companies in Hong Kong by some mainland provinces and cities, such as "Shanghai Industry" and "Beijing Holding". Red chips have become an important channel for mainland enterprises to enter the international capital market except B shares and H shares. The rise and development of red chips also have a very positive impact on the Hong Kong stock market. From 1993 to the end of June, 1997, the funds raised by red chip companies through initial public offering and capital increase and allotment were115.5 billion USD. 19971-In June, the total amount of financing in the Hong Kong stock market was about143.3 billion Hong Kong dollars, of which red chips accounted for 23.8%.
Later, some people made a stricter definition of red chips: Chinese-funded enterprises listed in Hong Kong are called red chips only if their parent companies are registered in Hong Kong and bound by Hong Kong laws. Usually, these stocks are regarded as red chips by investors.
H shares refer to foreign-funded shares registered in mainland China and listed in Hongkong. "H" is the first letter of Hong Kong English.
It can be seen that both red chips and H shares are listed in Hong Kong, and their fundamental differences are as follows: red chips are registered and managed overseas and belong to Hong Kong companies or overseas companies; H shares are registered and managed in the Mainland and belong to Chinese mainland companies. The main differences between red chips and H shares, which are closely related to investment decisions, are:
All red chips can be listed and circulated, and some state-owned H shares cannot be listed and circulated; When issuing new shares in the future, red chips may have more flexibility and space, while the risk of issuing H shares may be higher and the time may be relatively long.
The stock options held by the red-chip management may be the same as those of overseas companies, and the management can enjoy all the rights and interests of all stock options; However, H shares are different. Management doesn't really own stock options of listed companies, even if it does, it is a simulated stock option.
Red-chip companies do not need to meet the legal procedures and conditions of the mainland when issuing bonds such as convertible bonds, while H shares need to meet the legal procedures and conditions of the mainland and be approved by relevant state departments.
In addition, the stocks of large and medium-sized companies with certain influence, good performance, active trading and slightly better dividends in their respective industries are called red chips. The word "red chip" originated from western casinos. In western casinos, there are three colors of chips, among which blue chips are the most valuable, followed by red chips and white chips are the worst.