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.
China’s economy has slowed in the wake of the ongoing Sino-US trade dispute, with both industrial output and retail sales growth declining sharply in April. The country’s manufacturing activity also contracted more than expected in May, fuelling economists’ expectations that the government will have to roll out more stimulus measures to bolster growth.
In Jan-May 2019, the FTSE ST China Index’s five best-performing constituents were: Hi-P Intl (+36.1%), China Aviation Oil (+22.0%), Ying Li Intl (+19.8%), EC World REIT (+17.6%) and CapitaLand Retail China Trust (+14.0%). The five averaged a total return of +22% in the YTD.
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. The 19 constituents of the Index have a combined market capitalisation of more than S$60 billion. The constituents with the five largest weights in the Index are: Hongkong Land (42.1%), Wilmar International (25.1%), Yangzijiang Shipbuilding (11.3%), Hutchison Port Holdings Trust (6.2%) and CapitaLand Retail China Trust (3.4%).
Over the last three years, the Index has generated a total return of 19.0%. This compares with total returns of 16.6% and 36.7% for the CSI 300 Index and FTSE China A50 Index respectively, and total returns of 1.2% and 43.3% for the Shanghai Composite Index and Hang Seng Index, over the same period.
Slower Growth, Uncertain Outlook
China’s economy has slowed in the wake of the ongoing Sino-US trade dispute, with both industrial output and retail sales growth declining sharply. In April, industrial output growth eased to 5.4% from 8.5% in March, while retail sales rose by 7.2%, well below the 8.7% increase in March, and the lowest in more than a decade.
The country’s manufacturing activity also contracted more than expected in May, with the official manufacturing Purchasing Managers’ Index (PMI) falling sharply to 49.4 from 50.1 in April. As a result, economists believe the government will have to roll out more stimulus measures as the world’s second-largest economy continues to grapple with the impact of bilateral trade tensions.
Best-Performing Index Constituents in Jan-May 2019
In the first five months of 2019, the FTSE ST China Index’s five best-performing constituents were: Hi-P International (+36.1%), China Aviation Oil (+22.0%), Ying Li International (+19.8%), EC World REIT (+17.6%) and CapitaLand Retail China Trust (+14.0%). The five averaged a total return of +21.9% in the YTD, bringing their one-year and there-year total returns to -0.3% and +61.4% respectively.
The table below details the 10 best-performing constituents of the FTSE ST China Index, sorted by Jan-May 2019 total returns.
| Name | SGX Code |
Market Cap S$m |
Total Return YTD % |
Total Return 1 Yr % |
Total Return 3 Yr % |
T12M Div Ind Yld (%) |
|---|---|---|---|---|---|---|
| HI-P INTL | H17 | 949 | 36.1 | -12.9 | 254.2 | 4.3 |
| CHINA AVIATION OIL | G92 | 1,075 | 22.0 | -20.7 | 31.4 | 3.6 |
| YING LI INTL | 5DM | 358 | 19.8 | 13.0 | -0.7 | NA |
| EC WORLD REIT | BWCU | 623 | 17.6 | 17.0 | NA | 8.1 |
| CAPITALAND RETAIL CHINA TRUST | AU8U | 1,508 | 14.0 | 1.8 | 22.2 | 6.8 |
| YANGZIJIANG SHIPBUILDING | BS6 | 5,445 | 13.4 | 46.9 | 66.8 | 3.7 |
| SIIC ENVIRONMENT | BHK | 769 | 12.9 | -22.0 | -52.1 | 6.8 |
| WILMAR INTL | F34 | 20,887 | 7.5 | 4.7 | 7.5 | 3.2 |
| HONGKONG LAND | H78 | 21,604 | 6.7 | -5.0 | 17.5 | 3.3 |
| HONG LEONG ASIA | H22 | 393 | 6.1 | -43.8 | -31.0 | NA |
| Average | 15.6 | -2.1 | 31.6 | 4.0 |
Source: Bloomberg & StockFacts (data as of 31 May 2019)
Over the first five months of the year, the five least-performing constituents of the Index were: Valuetronics Ltd (-8.3%), Geo Energy Resources (-9.2%), Delong Holdings (-6.2%), CITIC Envirotech (-12.8%) and China Sunsine Chemical (-4.2%). The five averaged a total return of -8.2% over the period.
