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Want to Access China’s Growth? Here’s Three Ways to Get It

An investment in the Straits Times Index (SGX: STI) could perhaps be tagged as a proxy for investing into Singapore’s economy.

However, for those looking for exposure to China through the constituents of the Straits Times Index, you will not be disappointed. Many of the blue chips within the index are large diversified corporations and quite a number of them have a huge exposure to the Asian economic giant, China. Here’re three of them:

1. CapitaLand Limited  (SGX: C31)

CapitaLand is the largest property developer in Singapore and it has labeled the Chinese market as one of its core markets alongside Singapore.

According to its latest financials, some 45% of the company’s total assets of S$32.9 billion are based in China, which amounts to S$14.9 billion.

CapitaLand’s development projects in China are mainly in Tier 1 and Tier 2 cities such as Beijing, Tianjin, Shanghai, Hangzhou. Suzhou, Ningbo, Guangzhou, Shenzhen, Chengdu, Chongqing, and Wuhan. CapitaLand believes that it is well positioned to benefit from the urbanisation of the Chinese population and the growth of the country’s consumer spending power.

2. Wilmar International  (SGX: F34)

One of the largest consumer product companies in South East Asia, Wilmar International has set its sights on China since the beginning of its formation.

Currently, China is Wilmar’s largest market, with India and Indonesia also considered as the company’s core markets.

Besides being the current largest oilseeds crusher, edible oils refiner and specialty fats manufacturer in China, Wilmar also controls some of the most famous branded-consumer oil, rice and flour products in the middle kingdom.

3. ComfortDelGro Corporation  (SGX: C52)

ComfortDelGro Corporation’s Comfort brand of taxis are a familiar and well-known sight in Singapore. What might not be that well-known however, is that the company actually derives almost half of its profit from outside Singapore’s shores.

As part of its overseas operations, ComfortDelGro runs buses, taxis, car rental services, vehicle testing, engineering workshops and even driving schools in 13 major Chinese cities. Operating profits from China accounted for around 11.5% of the company’s total operating profit in 2013. Currently, ComfortDelGro’s taxi fleet in China is only about 60% to 70% of its fleet size in Singapore, indicating some serious runway for growth in the future.

Foolish Summary

Due to the natural limitations of the local Singapore market, many homegrown Singaporean companies had chose to venture overseas years ago.

Now, many of the large corporations in Singapore are bona fide Multi-National Corporations. And importantly, many of these companies have a strong presence in the largest economy in Asia, China.

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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 contributor Stanley Lim owns Wilmar International.