China Concepts Stock

AAA

DEFINITION of 'China Concepts Stock'

The stock of a company whose assets or earnings have significant activities in China. China concepts stocks will trade on different stock exchanges such as the Hong Kong exchange, under the name of H-Shares or "red chip" stocks. The People's Republic of China is undergoing major financial transformation, so many leading mainland-based companies chose to list themselves elsewhere to gain access to investor capital as quickly as possible.

The China concepts stocks are considered one of the purest investment plays on China's long-term economic growth outside of direct mainland investment.

INVESTOPEDIA EXPLAINS 'China Concepts Stock'

Beginning in 1980, the PRC (Peoples Republic of China) started opening up to joint ventures with foreign companies. China is developing capital markets of its own to attract foreign funds; they have even taken part in the some of the biggest initial public offerings in history as they transition large state-run businesses into publicly-traded companies.

RELATED TERMS
  1. Special Administrative Region - ...

    Unique geographical areas with a high degree of autonomy set ...
  2. H-Shares

    A share of a company incorporated in the Chinese mainland that ...
  3. Hang Seng Index - HSI

    A market capitalization-weighted index of 40 of the largest companies ...
  4. China Investment Corporation - ...

    A government-sponsored entity of the People's Republic of China ...
  5. Red Chip

    A company based in Mainland China that is incorporated internationally ...
  6. Chinese Depositary Receipt - CDR

    A type of depositary receipt that is traded on Chinese stock ...
RELATED FAQS
  1. I live in the U.S. How can I trade stocks in China and India?

    Foreign markets have always been an object of envy to domestic investors because the indexes in some foreign countries have ... Read Full Answer >>
  2. What emerging markets are best suited for investing in the aerospace sector?

    The two best emerging markets for investing in the aerospace sector are China and India. Both countries have a rapidly expanding ... Read Full Answer >>
  3. What are some common risks that are unique to investing in the electronics sector?

    The electronics sector presents several potential risks for investors. Variable costs associated with production may vary, ... Read Full Answer >>
  4. What impact will growth in the emerging markets have on automotive sector?

    Continuing economic growth in the emerging market economies should have a very positive impact on the automotive industry ... Read Full Answer >>
  5. What other sectors are most highly correlated with the aerospace sector?

    Sectors that correlate closely with the aerospace sector include the aviation and defense industries. These industries all ... Read Full Answer >>
  6. Is there an index for tracking mid-cap stocks?

    There are several indexes for tracking mid-cap stocks. The most widely referenced is the S&P Mid-Cap 400, but others ... Read Full Answer >>
Related Articles
  1. Investing Basics

    Investing In China

    Investment opportunity is huge in China. However, investors should consider the pitfalls, understand the risks and rewards, focus on shareholder-friendly companies and stick to investments they ...
  2. Investing Basics

    Why Country Funds Are So Risky

    High returns come at a price, but country funds may still be a good bet.
  3. Investing

    Why International Diversification Matters Today

    Given the breadth and diversity of the U.S. economy and market, many U.S. investors feel comfortable keeping their money within U.S. borders.
  4. Economics

    Understanding Green Field Investments

    A green field investment refers to a company, usually a large multi-national corporation, building a new facility in a foreign country.
  5. Investing News

    Cost-Free Connection Of Target Groups To Marketers

    ZipDial spotted a niche marketing opportunity in the area of “missed calls” and developed a business around it. Here is how ZipDial works and its benefits.
  6. Investing News

    The Funds Keep Flowing Into Indian Tech Startups

    Investors are increasingly turning their attention to Indian tech startup companies. Billions of dollars are flowing into the startup sector in India.
  7. Mutual Funds & ETFs

    Is the PowerShares (PFEM) ETF a Good Bet Now?

    What you need to know if you are considering trading PowerShares Fundamental Emerging Markets Local Debt ETF.
  8. Economics

    One Silver Lining Of Slower Global Growth

    Stocks struggled last week amid more evidence out of the world’s largest economies that global economic growth isn’t accelerating as expected.
  9. Mutual Funds & ETFs

    Anatomy of Emerging Markets Debt ETF (EMLC)

    This emerging market bond ETF offers a high yield, but there are dangers. Find out why.
  10. Mutual Funds & ETFs

    Financial Bear 3X (FAZ): Bull in a Bear Suit?

    Why the Financial Bear 3X Direxion ETF looks like a bullish bet.

You May Also Like

Hot Definitions
  1. Fisher Effect

    An economic theory proposed by economist Irving Fisher that describes the relationship between inflation and both real and ...
  2. Fiduciary

    1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets ...
  3. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  4. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  5. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  6. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
Trading Center