What are Concept Stocks?

Concept stocks are stocks with some special connotation, as opposed to performance stocks. Performance stocks need to have good performance support. While the concept stock is relying on a certain theme such as the concept of asset reorganization, three concepts to support the price. And this connotation is usually used as a stock selection and speculation topics, become a hot spot in the stock market.

Concept stock is a stock market term used as a way to select stocks. Compared to top-performing stocks, which must be supported by good operating results, concept stocks are simply a combination of stocks of the same type that rely on the same topic to be included in stock selection. Because of the advertising effect of concept stocks, they do not have any guarantee of profitability.

The concept of the stock market was also originally a generic term for a class of stocks with common characteristics. Such as the Olympic concept, refers to a class of companies that have business opportunities with the hosting of the Olympic Games. There are many such concepts, such as network concepts, 3G concepts, WTO concepts, biomedical concepts, the overall listing concept, the concept of stock index futures,...... but in the stock market, the concept of the inner meaning is not just a generalization of a stock category, its derived meaning is a market consensus. For example, the concept of the network, before the network became a concept, involving the Internet stock at best can only be called a plate, is a neutral definition, but become a concept of the meaning has changed. Concept is a more positive, more certain meaning of the investment consensus. The industrial background, investment opportunities and future prospects of conceptual stocks will be carefully analyzed and studied by investors with great confidence.

Concept stocks generally have a very strong advertising effect. A stock itself may not be very attractive, but once it is included in a concept, it will be closely watched by all investors. Such as a company is to do canned food in the early days, and later also produced some mineral water and other products, performance is mediocre, industrial obsolescence, attention to the company's investors are very few. After the company turned into a network of concept stocks, it did start an e-commerce site, mainly to sell its mineral water. The stock immediately became the center of attention in the stock market.

China Concepts Stock is a set of stock of companies whose assets or earnings have significant activities in mainland China. The People's Republic of China is undergoing major financial transformation, and many leading mainland-based companies have chosen to list themselves overseas to gain access to foreign investor capital. Currently, there are China Concepts Stocks listed on several major stock exchanges around the globe, including the Hong Kong Stock Exchange (HKEx), Singapore Exchange (SGX), New York Stock Exchange (NYSE), NASDAQ, NYSE MKT (formerly known as the American Stock Exchange), London Stock Exchange (LSE), Euronext, and the Tokyo Stock Exchange (TSE).