SGX’s largest China Financial stocks averaged 5% YTD

Find out the top 5 best performers.

Recent readjustments to China’s Monetary Policy approach has included a tapering off in money supply growth while reducing interest rates and the bank’s required reserve ratio.

According to SGX, this has helped see an increase in the amount of bank lending in China.

On Friday, reports showed that China’s Money Supply growth continued to taper off in January with M2 Money Supply growth at 10.8% in January 2015. This was lower than the 12.2% growth in December and lower than the rolling 12 month growth average of 12.8%.

Meanwhile, credit growth has firmed in recent months with aggregate financing registering 2.05 trillion Renminbi in January – up almost tenfold from levels in July 2014. While January is typically a seasonally stronger for banking activity – expansionary efforts are being channelled more through the banks than broader avenues such as money supply growth. Based on other recent reforms, financial markets are also expected to play a greater role in the China’s ongoing growth engine.

The five largest capitalised financial stocks which report majority of their revenue in China are – Hongkong Land Holdings, Global Logistic Properties, Yuexiu Property Companies, Yanlord Land Group, and CapitaRetail China Trust. These five stocks have a combined market capitalisation of S$43.7 billion and they averaged 4.5% dividend adjusted return in the year-to-date. In addition, these five stocks maintained an average dividend yield of 3.3%.