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 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.