It seems that the party surrounding the red-hot Chinese stock markets is finally starting to spill over here, with the locally listed ‘S-Chips’ beginning to groove to a faster beat! S chips - or Chinese companies listed on the SGX, tracked loosely by the FTSE China Top Index, which comprises the top 20 largest Chinese companies listed on SGX - have so far managed ‘only’ a 15% return in these past three months. This falls short of the major Chinese indices, including the CSI 300 and the Shanghai Composite, both of which have gained more than 30% over the same period. This shortfall is even clearer when considering that as Chinese indices have all punched through their 2010 highs - hovering more than 25% above their 2010 highs in the case of the CSI 300 - the FTSE ST China Top Index is languishing at 30% below its 2010 highs! Whilst we have seen creeping interest in the S chips over the past four weeks, they really started to take off yesterday with the FTSE ST China Top Index gaining 1.93% to close at 216.34. On a three-month-return basis, the FTSE ST China TOP Index is up 9.47%, paling in comparison to the three-month-return on the CSI 300 at 36.37%. In yesterday’s trade, names like Yanlord (+7.6%), Cosco (+6.034%), China Fisheries(+5.263%) and China Everbright (+5.116%) led the advancers. Critically, trading volumes for these names seem to have exploded on the upside. Could the Singapore S chips finally be dancing in time to their more glamorous cousins in China?

FTSE ST China Top Index

Source: SGX
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