OREANDA-NEWS. The Singapore Exchange (SGX) lists 125 companies whose principal place of business, or head office, is in China. Of these 125, the 10 largest capitalised stocks have a combined market capitalisation of S\$21.5 billion.

Among these, four are among the 10 largest capitalised stocks in the included in the FTSE ST China Index as discussed in the recent Market Update. Note the FTSE ST China Index includes companies or trusts that generate half their revenues or base half their assets in China, rather than having their principal place of business in China.

The 10 largest companies that locate their head offices in China represent as many as six different industries – Machinery, Real Estate Management and Development, Water Utilities, Commercial Services and Supplies, Transportation Infrastructure, and Hotels, Restaurants and Leisure, according to the Global Industry Classification Standard (GICS®).

These 10 largest China-linked stocks averaged 19.0% price gain in the year thus far, with dividends boosting their year-to-date returns to 20.5%. Their one-year and three-year dividend-adjusted returns were 17.3% and 180.4% respectively. These 10 stocks trade at an average price-earnings ratio of 32.3 and have an average dividend yield of 2.9%.

The 10 stocks that generated the highest returns in the year thus far were SIIC Environment Holdings (+52.2), China New Town Development Company (+37.7%), Straco Corporation (+34.0%), Yuexiu Property Company (+31.8%), and Yangzijiang Shipbuilding (Holdings) (+21.5%). Within this group, Straco Corporation, Yangzijiang Shipbuilding (Holdings), and SIIC Environment Holdings have also generated the best performances over the past 12 months.

Note that clicking on a company’s name will take you to its relevant page on SGX StockFacts.

The stocks currently trading closest to their 12-month highs are United Envirotech, Yangzijiang Shipbuilding (Holdings), Yuexiu Property Company, China Merchants Holdings (Pacific) and Straco Corporation.

Over the last three years, three of the companies with the highest returns were water utility plays – United Envirotech, SIIC Environment Holdings, and China Everbright Water – and are among the largest capitalised stocks of that industry.