As China stirs from its economic slumber and begins flexing its might once again, investors are understandably eyeing the mainland with cautious optimism. But here’s the twist – instead of charging straight into the Middle Kingdom, perhaps the smarter play is to look a little closer to home. Singapore, with its shrewdly placed businesses and regional savvy, might just be the dark horse of the China resurgence story. Specifically, I’ve got my eye on three local champions: CapitaLand China Trust (CLCT), DBS Group Holdings (DBS), and Wilmar International. Each is uniquely positioned to ride China’s recovery – albeit in their own charmingly different ways.
Singapore connects East and West with precision and flair
CapitaLand China Trust: Real Estate with Real Resilience
Let’s start with CLCT. Yes, it’s a property trust, and yes, it operates entirely in China – which understandably raises some eyebrows given the headlines swirling around China’s real estate sector. But here’s the kicker: $CapLand China T(AU8U.SI)$ isn’t just betting on bricks and mortar, it’s betting on where the people actually spend time – vibrant, high-footfall retail hubs in Tier 1 and Tier 2 cities.
Sure, the FY 2024 numbers weren’t exactly singing from the rooftops – net property income down 5.8%, and distributions taking a 16.2% haircut. But underneath that rather unflattering exterior lies a surprisingly resilient engine. Occupancy rates above 98%, tenant sales inching higher, and shopper traffic bouncing up nearly 9%? Not exactly the stuff of doom and gloom. In a country as vast and variegated as China, location is everything – and CLCT seems to have picked its spots with unerring precision.
Now, if you’re the type to panic at the first whiff of a downturn, CLCT probably isn’t your cup of oolong. But if you’ve got a bit more nerve and a longer investment horizon, there’s an argument to be made that you’re buying prime China exposure at a decent discount.
DBS: The Banker Who Saw the Future
Next up, DBS – Singapore’s crown jewel in the banking sector. It’s tempting to assume its China playbook is all about loans and trade finance. But dig a little deeper, and you’ll find the bank is quietly positioning itself to win in the next phase of China’s evolution: wealth creation.
Now, I’ll admit, 2024 wasn’t a barnstormer for DBS’s Greater China lending business. But that’s missing the forest for the trees. What really excites me is the bank’s aggressive expansion into wealth management – an area where Chinese demand is exploding. With income from wealth management up 18% to SGD 5.22 billion, DBS isn’t just lending money; it’s managing it, growing it, and charging handsome fees for the privilege.
Its partnerships with Chinese banks and its growing clout in cross-border financial services position $DBS Group Holdings(D05.SI)$ perfectly to serve China’s burgeoning class of high-net-worth individuals. Wealth, after all, needs a custodian – and DBS is making a strong case to be the butler.
Lion meets dragon in a digital dance of capital
Wilmar: Feeding China’s Appetite for Better
Then there’s $Wilmar Intl(F34.SI)$ – Singapore’s agribusiness titan and a name many associate with the humble cooking oil bottle. But if you think Wilmar’s story ends at the supermarket shelf, think again.
China is Wilmar’s biggest market, and while demand for staples will always hum in the background, the real magic lies in the shift towards premium, processed food. Chinese consumers aren’t just buying more – they’re buying better. That’s music to Wilmar’s ears, as the company expands its higher-margin product lines and sharpens its focus on food safety and traceability.
It helps, of course, that Wilmar’s ‘Fortune’ brand is practically a household name in China. But what really sets it apart is scale – massive, efficient, and increasingly tech-enabled. In a landscape where regulators are cracking down on quality lapses, Wilmar’s reputation becomes its moat.
Growth isn’t just upward—it’s organic, strategic, and evolving
So... Should You Dive In?
As with most things in investing, timing is everything. CLCT is a bit of a contrarian punt – battered but not broken, with upside potential for the brave. DBS offers a steadier hand, quietly evolving into a pan-Asian wealth manager that could thrive on China’s prosperity without being overly exposed to its wobbles. And Wilmar? Well, it might just be the stealth winner of the trio – feeding the dragon while keeping its own margins plump.
Each of these Singaporean names offers a different flavour of China exposure – property, finance, and food. And while the road ahead may not be without bumps, I reckon it’s a ride well worth considering – especially if you prefer your China play with a splash of Singaporean prudence and a hint of humour.
@TigerStars @Daily_Discussion @Tiger_comments @Tiger_SG @Tiger_Earnings @TigerClub@ @TigerWire
Comments