China Concepts Stock


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.

BREAKING DOWN '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.

  1. Special Administrative Region - ...

    Unique geographical areas with a high degree of autonomy set ...
  2. Hang Seng Index - HSI

    A market capitalization-weighted index of 40 of the largest companies ...
  3. H-Shares

    A share of a company incorporated in the Chinese mainland that ...
  4. Red Chip

    A company based in Mainland China that is incorporated internationally ...
  5. Chinese Wall

    The ethical barrier between different divisions of a financial ...
  6. Chinese Depositary Receipt - CDR

    A type of depositary receipt that is traded on Chinese stock ...
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