Minister says red chips are Chinese

Red chip companies will be considered as domestic for the purpose of investment in China’s ports, reported Ming Pao Daily, citing communications minister Huang Zhendong. Foreign investors are restricted to holding no more than 49 per cent in any port. Red chips, mainland-backed companies whose shares are listed in Hong Kong, include the likes of Cosco Pacific, China Merchants Holdings and Shanghai Industrial Holdings. All of these companies have recently been involved in purchasing stakes of more than 50 per cent in Chinese ports.