Top 10 SGX-listed China stocks up 13%

A shoe factory in Putian, Fujian province. China’s manufacturing output rose by a better-than-expected 6.1 per cent last month from 5.9 per cent in April.
A shoe factory in Putian, Fujian province. China’s manufacturing output rose by a better-than-expected 6.1 per cent last month from 5.9 per cent in April.PHOTO: REUTERS

CHINA stocks listed on the Singapore bourse have put in a strong performance this year.

The 10 largest constituents of the FTSE ST China Index have averaged a price gain of 13.1 per cent this year, with dividends boosting average returns to 14.8 per cent.

They have a combined market capitalisation of $80.9 billion, according to a Singapore Exchange report yesterday.

Mainboard-listed water specialist SIIC Environment Holdings is the best performer, up about 55.8 per cent this year.

It is followed by Biosensors International, which has risen 38.5 per cent, and Hongkong Land Holdings, ahead by 25.7 per cent.

Yangzijiang Shipbuilding is up 21.5 per cent while CapitaLand Retail China Trust has gained 8 per cent.

The three-year average total return for the 10 best-performing stocks is 45.3 per cent, and they derive more than two-thirds of total sales from mainland China.

These 10 stocks have an average price-earnings multiple of 30 and a price-to-book ratio of 1.09. They have generated an average dividend yield of 3.6 per cent.

Hutchison Port Holdings Trust posted the strongest dividend yield at 8.4 per cent, followed by CapitaLand Retail China Trust at 6.6 per cent.

China's slowing growth showed signs of bottoming out after manufacturing output rose by a better-than-expected 6.1 per cent last month from 5.9 per cent in April, according to government data last week.

The country's home sales climbed for the second straight month in May as demand was bolstered by a third interest rate cut and the removal of property curbs in November.

The country's broadest measure of new credit also expanded more than expected last month as the effects of monetary easing began to take hold.

chiaym@sph.com.sg

A version of this article appeared in the print edition of The Straits Times on June 17, 2015, with the headline 'Top 10 SGX-listed China stocks up 13%'. Print Edition | Subscribe