06 September 2017
FTSE ST China Index up 18% in 2017 YTD
  • In the 2017 YTD, Singapore’s FTSE ST China Index has generated a total return of 17.9%, compared to a 14.9% return for the H-share Index in SGD terms.
  • The FTSE ST China Index consists of FTSE ST All-Share Index constituents that report either at least half of their sales revenues from Mainland China, or report at least half of their operating assets in Mainland China.
  • CWT, Hi-P International, Valuetronics Holdings and Geo Energy Resources will join the FTSE ST China Index on 18 September. This will take the number of constituents in the Index to 21. There are no Index exclusions following the recent review.
  • These four pending FTSE ST China Index entrants have generated average price gains of 72% in the 2017 YTD, ranging from a 8.9% gain for Geo Energy Resources to a 172.6% gain for Hi-P International.

Singapore lists a number of companies and trusts with their principal place of business in China, in addition to Singapore based companies and trusts that generate revenue in China or base assets in China.

 

Serving as a benchmark for these stocks, FTSE Russell have designed the FTSE ST China Index. The FTSE ST China Index consists of stocks of the FTSE ST All-Share Index that have reported either at least 50% of their revenues from Mainland China, or reported at least 50% of their operating assets are located in Mainland China.

 

In the 2017 year through to 5 September, the FTSE ST China Index has generated a total return of 17.9%, compared to a gain of 14.9% for the H-share Index in SGD terms.

 

2017 YTD Total Return (%)

2017 Comparative Price Moves

Source: Bloomberg (Data as of 5 September 2017)

 

The year-to-date gains of the FTSE ST China Index have coincided with reports of increased trade with China over the first five months of 2017.

 

As a foundation, China continued to be Singapore’s largest trading partner by trade value in 2016, with US$66 billion in combined export and import value. For the year thus far, Singapore and China’s bilateral trade value totaled US$31 billion for the first five months of 2017, which was up 20% year-on-year (YoY). This is based on Bloomberg export and import data.

 

In the course of 2017, China has also released its 4Q16, 1Q16 and 2Q16 GDP Growth Data, with all three growth numbers reported to be 0.1% above Bloomberg consensus estimates.

 

Index Constituents & Review Results

 

The FTSE ST China Index currently consists of 17 constituents which will advance to 21 constituents effective 18 September. Four stocks: CWT, Hi-P International, Valuetronics Holdings and Geo Energy Resources - will join the FTSE ST Index on 18 September.

 

These stocks are tabled below and consist of an integrated logistics and supply chain manager, two Information Technology stocks and a thermal coal miner. To see more details on each stock in the table below click on the stock name in SGX StockFacts.

 

Name

SGX Code

Market Cap S$M

Price S$

Price Change YTD %

Total Return YTD %

Total Return 1 Yr %

P/E

P/B

CWT

C14

1,363

2.270

17.6

19.2

21.1

11.7

1.5

Hi-P International

H17

1,089

1.390

172.6

213.9

288.9

13.3

1.8

Valuetronics Holdings

BN2

386

0.890

89.3

97.7

90.4

12.6

2.2

Geo Energy Resources

RE4

319

0.250

8.9

12.3

95.9

4.6

1.5

Average

 

 

 

72.1

85.8

124.0

10.6

1.8

Source: Bloomberg (Data as of 5 September 2017)

 

The above four stocks will also add an element of diversification to the FTSE ST China Index – as it is currently 60% weighted to Real Estate stocks.

 

The 10 largest weights of the Index as of 31 August are tabled below. These 10 stocks have averaged a 24.2% total return in the 2017 year through to 5 September. To see more details on each stock in the table below click on the stock name in SGX StockFacts.

 

Name

SGX Code

Market Cap S$M

Price S$

Price Change YTD %

Total Return YTD %

Total Return 1 Yr %

P/E

P/B

Dvd Ind Yld %

Hongkong Land Hldgs

H78

23,529

9.960

8.7

11.6

12.8

3.3

0.5

2.6

Wilmar International

F34

20,554

3.290

-8.4

-6.4

7.7

11.0

1.0

2.0

Global Logistic Properties

MC0

15,266

3.260

48.2

50.9

79.0

15.8

1.3

1.8

Yangzijiang Shipbuilding

BS6

5,346

1.410

73.6

79.4

91.1

11.3

1.1

2.8

Hutchison Port Hldgs Trust

NS8U

5,260

0.610

-3.3

4.8

11.8

24.2

0.8

7.6

Yanlord Land Group

Z25

3,370

1.750

32.2

35.3

33.8

4.6

0.8

2.4

SIIC Environment Hldgs

BHK

1,434

0.570

-2.6

-0.7

-2.4

12.1

1.0

1.7

CapitaLand Retail China Trust

AU8U

1,431

1.610

17.2

25.2

3.3

13.4

1.0

6.3

China Aviation Oil Singapore

G92

1,353

1.570

12.1

15.3

16.5

10.9

1.5

2.7

Metro Hldgs

M01

1,001

1.210

21.1

26.4

41.3

10.3

0.7

1.7

Average

 

 

 

19.9

24.2

29.5

11.7

1.0

3.2

Source: Bloomberg (Data as of 5 September 2017). Note the above table is sort by full market capitalisation – not index weights. The latter is available at the end of each month here.

 

Of the 10 stocks tabled above, SIIC Environment Holdings, Yangzijiang Shipbuilding and Metro Holdings were amongst the five strongest stocks of the Index in August. Midas Holdings and Ying Li International Real Estate made up the remaining two stocks of the five best performers for the month. Together the five stocks averaged price returns of 4.7% in August.

 

Hutchison Port Holdings Trust, Yanlord Land Group were amongst the five least performing stocks of the Index in August, along with China Everbright Water, Sunpower Group and Sino Grandness Food Industry Group. These five stocks averaged 6.9% price declines in August. 

 

The latest Fact Sheet on the FTSE ST China Index is available here

 

Did you know?

 

As many as five of the stocks within the FTSE ST China Index are also constituents of the Straits Times Index (STI). These include Hongkong Land Holdings, Wilmar International, Global Logistic Properties, Yangzijiang Shipbuilding and Hutchison Port Holdings Trust. Yangzijiang Shipbuilding which celebrated its 10 year anniversary of listing on SGX this year, has also been the STI’s best YTD performer.

 


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