China's upgraded GDP forecast benefiting some S'pore companies: SGX report

This article is more than 12 months old

A more optimistic economic outlook in China is benefiting Singapore-listed companies with exposure to the country.

An SGX My Gateway report yesterday noted that 180 of the companies listed here generate at least 20 per cent of their revenue from China, while 80 per cent derive half or more of sales from there.

It said 16 of the 20 largest capitalised stocks with at least 50 per cent of revenue generated from China have had positive price returns so far this year.

This comes on the back of China's gross domestic product forecast for the year, which was upgraded to 6.7 per cent last month.

The report added that those 20 largest capitalised stocks have had an average market cap weighted price return of 27.3 per cent in the year to date.

SGX My Gateway noted that the Straits Times Index's return so far this year is at 11.8 per cent, while the Hang Seng China Enterprises Index is up 9.4 per cent in Singapore-dollar terms.

In a separate report that focused on China exchange-traded funds (ETFs), SGX My Gateway said the five ETFs listed here generated average total returns of -0.1 per cent in the first two weeks of this month and 19 per cent in the year to date. This brought their average 12-month total return to 22 per cent.

The five ETFs have generated a combined turnover of $4.2 million in the first two weeks of this month, which takes the total year-to-date turnover to $97 million.- THE STRAITS TIMES