Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Asia’s leading multi-asset exchange

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

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SGX lists more than 700 companies with a combined market cap of nearly US$670 billion. Overseas listings comprise more than 45% of this total market cap. 
	 </li>
	<li>
There are more than 130 companies on SGX that are either headquartered or have their principal place of business in Hong Kong and/or Mainland China, with a combined market cap of over S$200 billion. Among them, pure China-based plays account for just under 100. 
	 </li>
	<li>Among the pure China-based plays, the five best performers in Jan-Feb 2019 were: Sunpower (+80.0%), China Jinjiang Environment (+38.0%), SIIC Environment (+36.4%), China Aviation Oil (+29.2%), and CITIC Envirotech (+19.7%). They have averaged a total return of +40.7% over the Jan-Feb period, bringing their 1Y and 3Y total returns to -11.1% and +30.2% respectively.</li>
</ul>
Singapore Exchange lists more than 700 companies with a combined market capitalisation of nearly US$670 billion. Overseas listings comprise more than 45% of this total market capitalisation. In comparison, the proportion of foreign companies listed on other exchanges ranges from over 1% for Stock Exchange of Hong Kong, 5% for the Nasdaq, more than 20% for London Stock Exchange and zero for Tokyo Stock Exchange.

Currently, there are more than 130 companies listed on SGX that are either headquartered or have their principal place of business in Hong Kong and/or Mainland China, and they have a combined market capitalisation of over S$200 billion.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-03/Foreign%20vs%20Domestic%20Listing%20on%20SGX.PNG" alt="Foreign vs Domestic Listings on SGX">
 </figure>
 <div class="content-caption">Foreign vs Domestic Listings on SGX</div>
In terms of pure China-based plays, there are just under 100 listings on SGX. Among these, the 10 best performers in January-February 2019 have a combined market cap of over S$15 billion, and their operations include utilities, oil and gas, real estate investment trusts (REITs), environmental services as well as industrial and construction machinery.

Among these 10, the five best performers in the first two months of the year were: Sunpower Group (+80.0%), China Jinjiang Environment (+38.0%), SIIC Environment (+36.4%), China Aviation Oil (+29.2%), and CITIC Envirotech (+19.7%). They have averaged a total return of +40.7% over the Jan-Feb period, bringing their one-year and three-year total returns to -11.1% and +30.2% respectively.

Three of the five best performers are REITs and/or real estate developers. For a recently published Market Update on China-related S-REITs and Developers, click <a href="https://www2.sgx.com/research-education/market-updates/20190215-highlights-china-related-s-reits-and-developers">here</a>.

The table below details the 10 best-performing pure China-based plays with market cap above S$200 million on SGX, sorted by Jan-Feb 2019 total returns

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Total Return Jan-Feb 19 (%)
			</td>
			<td>
			Total Return 1Y (%)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
			<td>
			Div Yld (%)
			</td>
			<td>
			P/E (x)
			</td>
		</tr>
<tr>
<td>
			SUNPOWER GROUP
			</td>
			<td>
			5GD
			</td>
			<td>
			450
			</td>
			<td>
			80.0
			</td>
			<td>
			-0.6
			</td>
			<td>
			106.7
			</td>
			<td>
			0.3
			</td>
			<td>
			7.5
			</td>
		</tr>
<tr>
<td>
			CHINA JINJIANG ENVIRONMENT
			</td>
			<td>
			BWM
			</td>
			<td>
			852
			</td>
			<td>
			38.0
			</td>
			<td>
			16.8
			</td>
			<td>
			0.0
			</td>
			<td>
			0.0
			</td>
			<td>
			0.0
			</td>
		</tr>
<tr>
<td>
			SIIC ENVIRONMENT
			</td>
			<td>
			BHK
			</td>
			<td>
			964
			</td>
			<td>
			36.4
			</td>
			<td>
			-25.0
			</td>
			<td>
			-43.8
			</td>
			<td>
			5.4
			</td>
			<td>
			8.3
			</td>
		</tr>
<tr>
<td>
			CHINA AVIATION OIL
			</td>
			<td>
			G92
			</td>
			<td>
			1,118
			</td>
			<td>
			29.2
			</td>
			<td>
			-10.8
			</td>
			<td>
			120.3
			</td>
			<td>
			3.5
			</td>
			<td>
			9.0
			</td>
		</tr>
<tr>
<td>
			CITIC ENVIROTECH
			</td>
			<td>
			CEE
			</td>
			<td>
			1,174
			</td>
			<td>
			19.7
			</td>
			<td>
			-35.8
			</td>
			<td>
			-32.0
			</td>
			<td>
			1.6
			</td>
			<td>
			10.8
			</td>
		</tr>
<tr>
<td>
			SASSEUR REIT
			</td>
			<td>
			CRPU
			</td>
			<td>
			868
			</td>
			<td>
			19.2
			</td>
			<td>
			0.0
			</td>
			<td>
			0.0
			</td>
			<td>
			9.4
			</td>
			<td>
			0.8~
			</td>
		</tr>
<tr>
<td>
			CHINA EVERBRIGHT WATER
			</td>
			<td>
			U9E
			</td>
			<td>
			1,017
			</td>
			<td>
			16.7
			</td>
			<td>
			-20.3
			</td>
			<td>
			-25.8
			</td>
			<td>
			2.6
			</td>
			<td>
			8.9
			</td>
		</tr>
<tr>
<td>
			YANGZIJIANG SHIPBUILDING
			</td>
			<td>
			BS6
			</td>
			<td>
			5,642
			</td>
			<td>
			14.4
			</td>
			<td>
			-1.3
			</td>
			<td>
			71.8
			</td>
			<td>
			3.1
			</td>
			<td>
			8.6
			</td>
		</tr>
<tr>
<td>
			YANLORD LAND
			</td>
			<td>
			Z25
			</td>
			<td>
			2,666
			</td>
			<td>
			13.9
			</td>
			<td>
			-12.9
			</td>
			<td>
			42.2
			</td>
			<td>
			4.7
			</td>
			<td>
			3.5
			</td>
		</tr>
<tr>
<td>
			EC WORLD REIT
			</td>
			<td>
			BWCU
			</td>
			<td>
			606
			</td>
			<td>
			10.1
			</td>
			<td>
			8.8
			</td>
			<td>
			0.0
			</td>
			<td>
			8.0
			</td>
			<td>
			0.9~
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			27.8
			</td>
			<td>
			-8.1
			</td>
			<td>
			23.9
			</td>
			<td>
			3.9
			</td>
			<td>
			7.1
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 28 Feb 2019 &amp; 5 March 2019)

~ P/B instead of P/E ratios used as more relevant for REITs

China’s Growth Outlook

China reduced its economic growth target for 2019 to 6%-6.5%, compared with a goal of “about 6.5%” announced for last year, as it struggles with a debt legacy and ongoing trade tensions with the US. The gross domestic product (GDP) growth target was released on Tuesday in Premier Li Keqiang’s annual work report to the National People’s Congress. The lower band of the target would be the country’s slowest pace of economic growth in almost three decades.

The World Bank already expects a further slowdown in the world’s second-largest economy this year. The agency has forecast growth of 6.2% in 2019, slightly below its previous projections as a result of weaker exports, and down from 6.5% expansion in 2018, it said in the January edition of its “<a href="https://www.worldbank.org/en/news/press-release/2019/01/08/darkening-prospects-global-economy-to-slow-to-29-percent-in-2019-as-trade-investment-weaken">Global Economic Prospects</a>” report.

Between 1999 and 2014, China has averaged a significantly stronger annual economic growth rate of 9.6%, reaching as high as over 14% in 2007. In recent years, the moderation in its growth rates, which still remain above the developing-economy average, has coincided with the government’s policy of pursuing high-quality, rather than high-speed, growth
</body></html>





SGX lists more than 700 companies with a combined market cap of nearly US$670 billion. Overseas listings comprise more than 45% of this total market cap. 
	 
	
There are more than 130 companies on SGX that are either headquartered or have their principal place of business in Hong Kong and/or Mainland China, with a combined market cap of over S$200 billion. Among them, pure China-based plays account for just under 100. 
	 
	Among the pure China-based plays, the five best performers in Jan-Feb 2019 were: Sunpower (+80.0%), China Jinjiang Environment (+38.0%), SIIC Environment (+36.4%), China Aviation Oil (+29.2%), and CITIC Envirotech (+19.7%). They have averaged a total return of +40.7% over the Jan-Feb period, bringing their 1Y and 3Y total returns to -11.1% and +30.2% respectively.

Singapore Exchange lists more than 700 companies with a combined market capitalisation of nearly US$670 billion. Overseas listings comprise more than 45% of this total market capitalisation. In comparison, the proportion of foreign companies listed on other exchanges ranges from over 1% for Stock Exchange of Hong Kong, 5% for the Nasdaq, more than 20% for London Stock Exchange and zero for Tokyo Stock Exchange.

Currently, there are more than 130 companies listed on SGX that are either headquartered or have their principal place of business in Hong Kong and/or Mainland China, and they have a combined market capitalisation of over S$200 billion.

      
    
    Foreign vs Domestic Listings on SGX
In terms of pure China-based plays, there are just under 100 listings on SGX. Among these, the 10 best performers in January-February 2019 have a combined market cap of over S$15 billion, and their operations include utilities, oil and gas, real estate investment trusts (REITs), environmental services as well as industrial and construction machinery.

Among these 10, the five best performers in the first two months of the year were: Sunpower Group (+80.0%), China Jinjiang Environment (+38.0%), SIIC Environment (+36.4%), China Aviation Oil (+29.2%), and CITIC Envirotech (+19.7%). They have averaged a total return of +40.7% over the Jan-Feb period, bringing their one-year and three-year total returns to -11.1% and +30.2% respectively.

Three of the five best performers are REITs and/or real estate developers. For a recently published Market Update on China-related S-REITs and Developers, click here.

The table below details the 10 best-performing pure China-based plays with market cap above S$200 million on SGX, sorted by Jan-Feb 2019 total returns




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return Jan-Feb 19 (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
			
			Div Yld (%)
			
			
			P/E (x)
			
		


			SUNPOWER GROUP
			
			
			5GD
			
			
			450
			
			
			80.0
			
			
			-0.6
			
			
			106.7
			
			
			0.3
			
			
			7.5
			
		


			CHINA JINJIANG ENVIRONMENT
			
			
			BWM
			
			
			852
			
			
			38.0
			
			
			16.8
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
		


			SIIC ENVIRONMENT
			
			
			BHK
			
			
			964
			
			
			36.4
			
			
			-25.0
			
			
			-43.8
			
			
			5.4
			
			
			8.3
			
		


			CHINA AVIATION OIL
			
			
			G92
			
			
			1,118
			
			
			29.2
			
			
			-10.8
			
			
			120.3
			
			
			3.5
			
			
			9.0
			
		


			CITIC ENVIROTECH
			
			
			CEE
			
			
			1,174
			
			
			19.7
			
			
			-35.8
			
			
			-32.0
			
			
			1.6
			
			
			10.8
			
		


			SASSEUR REIT
			
			
			CRPU
			
			
			868
			
			
			19.2
			
			
			0.0
			
			
			0.0
			
			
			9.4
			
			
			0.8~
			
		


			CHINA EVERBRIGHT WATER
			
			
			U9E
			
			
			1,017
			
			
			16.7
			
			
			-20.3
			
			
			-25.8
			
			
			2.6
			
			
			8.9
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			5,642
			
			
			14.4
			
			
			-1.3
			
			
			71.8
			
			
			3.1
			
			
			8.6
			
		


			YANLORD LAND
			
			
			Z25
			
			
			2,666
			
			
			13.9
			
			
			-12.9
			
			
			42.2
			
			
			4.7
			
			
			3.5
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			606
			
			
			10.1
			
			
			8.8
			
			
			0.0
			
			
			8.0
			
			
			0.9~
			
		


			Average
			
			
			 
			
			
			 
			
			
			27.8
			
			
			-8.1
			
			
			23.9
			
			
			3.9
			
			
			7.1
			
		

Source: Bloomberg &amp; StockFacts (data as of 28 Feb 2019 &amp; 5 March 2019)

~ P/B instead of P/E ratios used as more relevant for REITs

China’s Growth Outlook

China reduced its economic growth target for 2019 to 6%-6.5%, compared with a goal of “about 6.5%” announced for last year, as it struggles with a debt legacy and ongoing trade tensions with the US. The gross domestic product (GDP) growth target was released on Tuesday in Premier Li Keqiang’s annual work report to the National People’s Congress. The lower band of the target would be the country’s slowest pace of economic growth in almost three decades.

The World Bank already expects a further slowdown in the world’s second-largest economy this year. The agency has forecast growth of 6.2% in 2019, slightly below its previous projections as a result of weaker exports, and down from 6.5% expansion in 2018, it said in the January edition of its “Global Economic Prospects” report.

Between 1999 and 2014, China has averaged a significantly stronger annual economic growth rate of 9.6%, reaching as high as over 14% in 2007. In recent years, the moderation in its growth rates, which still remain above the developing-economy average, has coincided with the government’s policy of pursuing high-quality, rather than high-speed, growth



China Aviation Oil Singapore Corp (CAO SP)

Five Best-Performing China-Based Plays Avg 41% Total Return in Jan-Feb

Siic Environment Holdings Ltd

Five Best-Performing China-Based Plays Avg 41% Total Return in Jan-Feb