China’s steps to reopen will uplift some Singapore-listed stocks

The Chinese government is looking to slowly ease its travel restrictions.

Some Singapore-listed stocks with exposure to the China market may have received their Singles’ Day Present after the Mainland announced that it is seeking to reopen its economy, UOBKayHian said.

“Whilst the measures may be small at present, it is important that the Chinese government is signalling that it is taking preliminary steps to re-open the economy,” said the analyst.

“This could have medium- to long-term positive ramifications on Singapore-listed stocks. Stocks with meaningful exposure to China,” it added.

Its top large-cap picks are CapitaLand Ascott Trust, DBS, Genting Singapore, Keppel Corp, Lendlease REIT, Sembcorp Industries, Singapore Telecommunications, SIA Engineering, Thai Beverage, Venture Corp, Wilmar, and Yangzijiang Shipbuilding.

“2023 valuations for the STI remain inexpensive, with the STI trading at a forecast 2023 PE and P/B of 12.0x and 1.1x respectively, and paying a yield of 4.5%. We highlight that these multiples are meaningful discounts to the STI’s long-term averages,” said UOBKayHian.