Blue chip refers to a stable cash dividend policy, that is, a stable dividend. Generally speaking, it refers to a company stock with good performance and stability. Red chips refer to stocks registered overseas, listed in Hong Kong, controlled by Chinese capital and mainly engaged in mainland China.
The name of blue chips is literally blue chips. There are three kinds of chips in casinos, namely blue, white and red, and blue is the most valuable chip, so when it is applied to stocks, it is blue chips, which means the most valuable stocks, generally those of companies with abundant funds, outstanding performance, stable income, effective management and strong technology, which have a relatively high position in the industry.
The literal meaning of the name of red chips is that the national flag of China is red, so it is called the five-star red flag. Generally, we are called the red China, and these stocks of companies registered overseas and listed in Hong Kong are called red chips, mainly because their main business is in Chinese mainland, which is a very vivid name.
Any name will have its own meaning. Whether it is blue chip or red chip, it is a very vivid and easy-to-remember name. Once someone talks about blue chip and then thinks of the most valuable blue chip, it is clear that blue chip is the most valuable stock. As for the red chips, when we think of our national flag in China, we also take red as the main color, so we can understand the stocks of companies whose main business is in Chinese mainland.
There are many terms in the stock market that are exclusive. You don't know this information unless you know the industry. Therefore, if you want to know this industry deeply, you need to know these terms to some extent. Otherwise, an article is easy to read, so don't take it for granted. If you really want to invest in financial management, you must understand the necessary knowledge and rules, otherwise how can you do it well?
Blue chips and red chips have been described in detail above. Blue chips are the most valuable stocks and can continue to make profits. Red chips are shares of companies listed in Hong Kong, and their main business entities are in Chinese mainland.