13 Ways To Tap Into China’s Phenomenal Growth

Flag_of_the_People's_Republic_of_China.svgAll of a sudden, everyone has become some kind of Chinese economy expert. No sooner did China’s National People’s Congress announce that it plans to grow its economy at 7.5% this year, than naysayers have chipped in with their two-penny’s worth.

I have no idea what China’s growth rate will be this year. China will do what China has to do. It always has, and it always will. As an investor, I am not investing in China, as such. I am investing in companies that have exposure to China. There is a difference.

Here in Singapore, we can get some useful exposure to China without even leaving the comfort of our armchairs. There are so many quoted companies on the Singapore Exchange that it would be rude to not look at what they might have to offer. These include the three main banks UOB (SGX: U11)OCBC (SGX: O39) and DBS (SGX: D05). Their exposure to the China and Hong Kong range from around 5% to 29% of annual revenues.

If banks aren’t quite your cup of tea, property-related companies such as CapitaMalls Asia, Hongkong Land, CapitaLand and Global Logistic Properties (SGX: MC0) might fit the bill. In the case of the latter, over half its assets are located in the PRC.

Other Straits Times Index (SGX: ^STI) companies that have exposure to China include palm-oil producer Golden Agri-Resources and port operator Hutchison Port Holdings.

ComfortDelGro is another notable player in China. It operates taxi services in nine major cities that include Beijing, Shanghai, Nanjing and Chengdu. Its fleet comprises over 10,000 vehicles. By way of comparison, it owns 16,600 taxis in Singapore.

Whether we like it or not, China is going to have a major impact on our lives over the next decade or more. The mere fact that no fewer than 13 companies that make up the Straits Times Index have some exposure to the PRC speaks volumes. Consequently, investing in an index tracker that mimics the blue-chip index should give you some exposure to China. But if you want more, there is no shortage of companies to choose from.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.