The FTSE China A50 Index holds China’s 50 top companies across a broad range of industries. Here’s what to know about the index’s five largest companies, their performance, and business outlook
The FTSE China A50 Index tracks the performance of the 50 largest A-share companies listed on the Shanghai and Shenzhen stock exchanges. From leading baijiu producer Kweichow Moutai to electric vehicle (EV) battery giant Contemporary Amperex Technology (CATL), the index holds some of China’s most influential domestic companies.
Notably, many of the index’s holdings pay out attractive dividends as well. The index has a dividend yield of 3.5 percent, compared to 2.1 percent for the broader China market1.
Overview
To better understand the FTSE China A50 Index, let’s take a closer look at its top five holdings, which make up one third of the index.
Sector composition: The top five companies represent five different industries (Consumer Staples, Industrials, Financials, Utilities, and Consumer Discretionary), highlighting the diversity within the index.
Performance2: Despite the market volatility from US tariffs, the top five companies have generally held up well, with only one company posting negative returns in the year to date.
Dividend yield3: On average, the top five companies have a healthy 12-month dividend yield of 3.2 percent, a result of their resilient business models and stable earnings.
Here’s what to know about each company.
1. Kweichow Moutai
What does the company do?
Kweichow Moutai is a producer of premium baijiu and it is regarded as China’s most distinguished baijiu brand. As China’s largest A-share company by market capitalisation, Kweichow Moutai has a strong brand presence with its liquor frequently being served at diplomatic ceremonies, business banquets and important family occasions. The company has a keen focus on product innovation as well, having collaborated with other brands to co-launch Moutai-infused ice cream and coffee in recent years.
Outlook
Kweichow Moutai saw healthy revenue growth of 16 percent in 2024, despite raising prices of its flaqship liquor by around 20 percent per bottle in late 20234. Although revenue growth came in slightly below guidance, the company has so far managed to weather a broader slowdown in the baijiu sector as consumers cut back on spending, reflecting its strong pricing power and superior brand equity.
Additionally, the Chinese government’s plans to boost domestic consumption could be a tailwind for Kweichow Moutai and help drive greater demand for its premium liquor.
Performance
| Kweichow Moutai | |
| Year-to-date return | 1.8% |
| 5-year annualised return | 6.2% |
| Current price-to-book (P/B) value | 8.4 |
| Historical P/B value | 11.7 |
Source: Bloomberg, as of 28 April 2025.
Kweichow Moutai has generated a modest return of 1.8 percent year to date. On average however, it has delivered 6.2 percent annual returns over the past five years. The company is trading at a price to book (P/B) value of 8.4 currently, below its five-year average P/B value of 11.7. This suggests that its stock is undervalued and there could be upside potential.
Dividends
| Kweichow Moutai | |
| Dividend per share (2024) | RMB 27.6 |
| Dividend payout ratio (2024) | 40.2% |
| 12M dividend yield | 3.5% |
| 2025 dividend yield (est) | 3.6% |
Source: Bloomberg, as of 28 April 2025
Kweichow Moutai had a dividend payout ratio of 40.2 percent in 2024, i.e. it paid out 40.2 percent of its net income as dividends to shareholders. Over the past five years between 2020 and 2024, Kweichow Moutai’s dividend per share has grown 38 percent5. Its current 12-month dividend yield stands at 3.5 percent and the company is forecasted to maintain about the same yield in 2025, according to Bloomberg estimates.
2. Contemporary Amperex Technology (CATL)
What does the company do?
CATL is the world’s largest manufacturer of electric vehicle (EV) batteries, and it is a major supplier to Tesla. The company recently announced advances in its EV battery technology, including superfast charging of up to 520 km in 5 minutes. Currently listed on the Shenzhen stock exchange, CATL has filed to also list in Hong Kong this year, with the deal expected to raise at least $5 billion6. If completed, it would be Hong Kong’s largest IPO since early 2021.
Outlook
CATL is the only company within the index’s top five constituents to record negative returns on a year-to-date basis, largely due to geopolitical headwinds. Of the five top holdings, CATL has the largest US revenue exposure at 9.7 percent7.
However, CATL is in a strong position to ride out current challenges. It continues to dominate the EV battery space with a global market share of around 38.2 per cent8. Despite a global slowdown in EV demand and falling battery prices, CATL registered a 33 per cent jump in Q1 2025 earnings9.
Although market sentiment on the stock has turned negative, the company notes that the US accounts for only a small share of its shipments and that tariffs are likely to have minimal impact on its future performance10.
Performance
| CATL | |
| Year-to-date return | -9.4% |
| 5-year annualised return | 26.5% |
| Current price-to-book (P/B) value | 4.0 |
| Historical P/B value | 8.6 |
Source: Bloomberg, as of 28 April 2025.
CATL has declined 9.4 percent year to date. But the company has historically been a strong performer, with annualised returns of 26.5 percent over the past five years. At current P/B valuations of 4.0 compared to its historical P/B value of 8.6, its stock appears undervalued, suggesting attractive upside potential.
Dividends11
| CATL | |
| Dividend per share (2024) | RMB 4.5 |
| Dividend payout ratio (2024) | 50.0% |
| 12M dividend yield | 3.7% |
| 2025 dividend yield (est) | 1.9% |
Source: Bloomberg, as of 28 April 2025
CATL’s dividend per share has climbed from RMB 0.1 in 2020 to RMB 4.5 in 2024, representing a 3,400 percent increase over the past five years. In 2024, it paid out half of its net income as dividends.
Its current 12-month dividend yield stands at 3.7 percent though the yield is forecasted to drop to around 1.9 percent in 2025, according to Bloomberg estimates. This is not necessarily a bad thing as the company’s lower expected dividend is likely due to its increased investments in its global expansion and higher R&D, which diverts funds from dividend payouts12.
3. China Merchants Bank
What does the company do?
China Merchants Bank is one of China’s largest commercial banks. It offers a wide range of financial services, including retail banking, corporate banking, and wealth management, catering to both individual and institutional clients.
Outlook
China Merchants Bank reported earnings largely in line with expectations, with net profit up 1.2 percent in 202413. Notably, the bank’s wealth management business continues to grow from strength to strength. Its retail assets under management (AUM) rose 12 percent year-on-year in 2024, cementing its leading market share in the wealth management space14.
Year to date, the company has returned 8.0 percent, part of a wider trend of investors gravitating to Chinese banks for their attractive dividend yields15. The Chinese banking sector also stands to benefit from the government’s anticipated stimulus measures aimed at supporting economic growth.
Performance
| China Merchants Bank | |
| Year-to-date return | 8.0% |
| 5-year annualised return | 9.1% |
| Current price-to-book (P/B) value | 1.0 |
| Historical P/B value | 1.2 |
Source: Bloomberg, as of 28 April 2025.
With returns of 8.0 percent, China Merchants Bank is the second-best performing company out of the index’s top five holdings. Over the past five years, the company has delivered 9.1 percent returns each year on average.
At a current P/B value of 1.0, the company’s stock is fairly valued, though it is slightly below its historical P/B value of 1.2.
Dividends
| China Merchants Bank | |
| Dividend per share (2024) | RMB 2.0 |
| Dividend payout ratio (2024) | 34.2% |
| 12M dividend yield | 4.7% |
| 2025 dividend yield (est) | 4.7% |
Source: Bloomberg, as of 28 April 2025
The dividend per share for China Merchants Bank has increased 60 percent over the past five years between 2020 and 202416. In 2024, it paid out about one third of its net income as dividends.
Of the FTSE China A50 Index’s top five holdings, China Merchants Bank currently has the highest 12-month dividend yield at 4.7 percent and the company is forecasted to maintain that yield in 2025, according to Bloomberg estimates.
4. China Yangtze Power
What does the company do?
China Yangtze Power is not only China’s largest listed electric power company, but it is also the world’s largest listed hydropower company17. It operates the Three Gorges Dam and several other major hydropower stations along the Yangtze River, contributing significantly to China’s clean energy output.
Outlook
According to preliminary data, China Yangtze Power reported a 19 percent increase in net profit in 2024, driven mainly by a year-on-year increase in electricity generation from its hydropower stations18. This came as China experienced heavy rains in 2024, which replenished water levels in the Yangtze River and enabled the company’s hydropower stations to operate at higher capacities.
The stock has longer-term tailwinds as well, such as supportive government policies on clean energy amid China’s push to reach peak carbon emissions by 2030 and become carbon neutral before 2060. Hydropower is one of the cleanest forms of energy, producing no direct emissions.
Performance
| China Yangtze Power | |
| Year-to-date return | 1.3% |
| 5-year annualised return | 14.9% |
| Current price-to-book (P/B) value | 3.5 |
| Historical P/B value | 2.8 |
Source: Bloomberg, as of 28 April 2025.
Year to date, China Yangtze Power is almost flat at 1.3 percent. However, the company has delivered good double-digit returns of 14.9 percent each year, looking back over the past five years.
At a current P/B value of 3.5 compared to its historical P/B value of 2.8, the company’s stock is slightly overvalued.
Dividends
| China Yangtze Power | |
| Dividend per share (2023) | RMB 0.8 |
| Dividend payout ratio (2023) | 73.7% |
| 12M dividend yield | 3.5% |
| 2025 dividend yield (est) | 0.7% |
Source: Bloomberg, as of 28 April 2025
China Yangtze Power’s dividend per share has risen 17 percent from 2020 to 202319, with results for 2024 still pending. The company paid out 73.7 percent of its income as dividends in 2023. While its current 12-month dividend yield stands at 3.5 percent, that is forecasted to drop to 0.7 percent in 2025, according to Bloomberg estimates.
5. BYD
What does the company do?
BYD is the world’s top EV seller and is currently the world’s sixth-largest automaker20. The company is well-known not just for its price competitiveness, but also its various innovations such as God’s Eye, an advanced driver-assistance system, and its fast-charging battery technology. In Singapore, BYD became the top-selling car brand in 2024, marking the first time a Chinese EV brand has done so21.
Outlook22
BYD is one of the most promising EV car brands in the market today, driven by strong sales and eye-catching innovations. In China, BYD has expanded its market share after undercutting competitors with aggressive pricing strategies and offering its God’s Eye technology at no extra cost for most of its cars. The company is also making strides in markets like Europe, Southeast Asia and South America, and aims to double overseas sales to more than 800,000 cars in 2025. As a result, BYD’s net profit has doubled in Q1 2025 from a year earlier, the fastest pace in nearly two years.
To overcome potential tariff issues on Chinese car imports, BYD also plans to assemble its cars in factories abroad. It is setting up factories in Brazil, Thailand, Hungary, and Turkey.
Performance
| BYD | |
| Year-to-date return | 27.3% |
| 5-year annualised return | 45.1% |
| Current price-to-book (P/B) value | 5.0 |
| Historical P/B value | 5.6 |
Source: Bloomberg, as of 28 April 2025.
BYD has returned 27.3 percent year to date – offering the best performance out of the index’s top five holdings in 2025. BYD is also the best-performing stock over the past five years, with average annual returns of 45.1 percent.
Despite a healthy performance so far this year, BYD’s stock remains slightly undervalued. Its current P/B value stands at 5.0 compared to its historical P/B value of 5.6.
Dividends
| BYD | |
| Dividend per share (2024) | RMB 4.0 |
| Dividend payout ratio (2024) | 30.0% |
| 12M dividend yield | 0.9% |
| 2025 dividend yield (est) | 1.1% |
Source: Bloomberg, as of 28 April 2025.
As BYD scaled up its operations and earnings, its dividend per share has increased from RMB 0.2 in 202023 to RMB 4.0 in 2024. This represents a 2,546 percent increase over the past five years.
Its 12-month dividend yield stands at 0.9 percent. Although the figure seems low, this is due to how the dividend yield is calculated. BYD’s share price has risen more significantly than the increase in dividends over the past 12 months, resulting in a lower yield. For 2025, Bloomberg estimates put BYD’s dividend yield higher at 1.1 percent.
Will US tariffs affect dividend yields going forward?
US tariffs should not have a significant impact on the dividend yields of the index’s top five holdings. Four of the five top holdings have no or almost no revenue exposure to the US24. For CATL, its US revenue exposure is still relatively low at just 9.7 percent25. Overall, this should cushion the impact of US tariffs on their earnings and dividends.
While a global economic slowdown could still affect dividend yields in 2025, their domestic focus means the index’s top five companies are well-positioned to benefit from China’s anticipated stimulus plans to boost consumption and shore up economic growth. As such, we would continue to expect resilient dividend payouts from the index’s top five constituents.
Summary: Top 5 index holdings
| Company | Weight (%) | Sector | YTD total return (%) | 5Y annualised return (%) | 12M dividend yield (%) | 2024 US revenue exposure (%) |
| Kweichow Moutai | 11.8 | Consumer Staples | 1.8 | 6.2 | 3.5 | 1.0 |
| Contemporary Amperex Technology | 6.3 | Industrials | -9.4 | 26.5 | 2.8 | 9.7 |
| China Merchants Bank | 5.3 | Financials | 8.0 | 9.1 | 4.7 | 0.8 |
| China Yangtze Power | 4.4 | Utilities | 1.3 | 14.9 | 3.5 | 0 |
| BYD | 4.0 | Consumer Discretionary | 27.3 | 45.1 | 0.9 | 0 |
Source: Bloomberg, as of 28 April 2025
How to invest in the FTSE China A50 Index?
Investors can gain exposure to the FTSE China A50 Index by investing in exchange traded funds (ETFs) that track the index. For Singapore investors, the UOBAM FTSE China A50 Index (SGX: JK8) is an attractive option that is listed on the Singapore Exchange (SGX) and offers trading in SGD. This offers convenience for Singapore investors who do not wish to bother with currency exchange issues.
The ETF can be bought from just one unit, and Singaporeans can also invest in the ETF using their SRS funds.
Learn more about the UOBAM FTSE China A50 Index (SGX: JK8) here.
1Source: FTSE Russell, MSCI, as of 31 March 2025. Broader China market refers to the MSCI China Index
2Year to date figures quoted in this article are sourced from Bloomberg, as of 28 April 2025
3Dividend figures quoted in this article are sourced from Bloomberg, as of 28 April 2025
4Source: Kweichow Moutai earnings report, as of 31 Dec 2024
5Source: Bloomberg, as of 28 April 2025
6Source: CATL gets Hong Kong approval for this year’s biggest listing, The Business Times, 11 Apr 2025
7Source: Bloomberg, as of 28 April 2025
8Source: SNE Research, based on Jan and Feb data for 2025
9,10Source: CATL earnings report, as of 31 Mar 2025
11Dividend figures quoted in this section are all sourced from Bloomberg, as of 28 Apr 2025
12Source: CATL earnings report, as of 31 Mar 2025
13,14Source: China Merchants Bank earnings report, as of 31 Dec 2024
15,16Source: Bloomberg, as of 28 Apr 2025
17Source: China State-owned Assets Supervision and Administration Commission of the State Council
18Source: China Yangtze Power Announcement on 2024 Preliminary accounting data
19Source: Bloomberg, as of 28 Apr 2025
20Source: China EV giant BYD reboots Europe operations after strategic stumbles, sources say, Reuters, 23 Apr 2025
21Source: BYD tops 2024 new car sales in S’pore, first for a Chinese EV brand, The Straits Times, 23 Jan 2025
22 BYD earnings and outlook quoted sourced from BYD earnings call, 26 March 2025
23,24,25Source: Bloomberg, as of 28 Apr 2025
| If you are interested in investment opportunities related to the theme covered in this article, here is a UOB Asset Management Fund to consider: You may wish to seek advice from a financial adviser before making a commitment to invest in the above fund, and in the event that you choose not to do so, you should consider carefully whether the fund is suitable for you. |
MSCI Data are exclusive property of MSCI. MSCI Data are provided “as is”, MSCI bears no liability for or in connection with MSCI Data. Please see complete MSCI disclaimer here.
Distributions will be made in respect of the Distribution Classes of the Fund. Distributions are based on the NAV per unit of the relevant Distribution Class as at the last business day of the calendar month or quarter. The making of distributions is at the absolute discretion of UOBAM and that distributions are not guaranteed. The making of any distribution shall not be taken to imply that further distributions will be made. UOBAM reserves the right to vary the frequency and/or amount of distributions. Distributions from a fund may be made out of income and/or capital gains and (if income and/or capital gains are insufficient) out of capital. Investors should also note that the declaration and/or payment of distributions (whether out of income, capital gains, capital or otherwise) may have the effect of lowering the net asset value (NAV) of the relevant fund. Moreover, distributions out of capital may amount to a reduction of part of your original investment and may result in reduced future returns. Please refer to the Fund's prospectus for more information.
This document is for general information only. It does not constitute an offer or solicitation to deal in units (“Units”) in the UOBAM FTSE China A50 Index ETF (“Fund”) or investment advice or recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it.
The information contained in this document, including any data, projections and underlying assumptions, are based upon certain assumptions, management forecasts and analysis of information available and reflects prevailing conditions and UOB Asset Management Ltd’s (“UOBAM”) views as of the date of the document, all of which are subject to change at any time without notice. In preparing this document, UOBAM has relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by UOBAM. While the information provided herein is believed to be reliable, UOBAM makes no representation or warranty whether express or implied, and accepts no responsibility or liability for its completeness or accuracy. Nothing in this document shall, under any circumstances constitute a continuing representation or give rise to any implication that there has not been or there will not be any change affecting the Fund. No representation or promise as to the performance of the Fund or the return on your investment is made. Past performance of the Fund or UOBAM and any past performance or prediction, projection or forecast of the economic trends or securities market are not necessarily indicative of the future or likely performance of the Fund or UOBAM. The value of Units and the income from them, if any, may fall as well as rise, and is likely to have high volatility due to the investment policies and/or portfolio management techniques employed by the Fund. Investments in Units involve risks, including the possible loss of the principal amount invested, and are not obligations of, deposits in, or guaranteed or insured by United Overseas Bank Limited (“UOB”), UOBAM, or any of their subsidiary, associate or affiliate (“UOB Group”) or distributors of the Fund. The Fund may use or invest in financial derivative instruments and you should be aware of the risks associated with investments in financial derivative instruments which are described in the Fund's prospectus. The UOB Group may have interests in the Units and may also perform or seek to perform brokering and other investment or securities-related services for the Fund.
Investors should note that the Fund is not like a conventional unit trust in that an investor cannot redeem his Units directly with UOBAM and can only do so through the participating dealers, either directly or through a stockbroker, if his redemption amount satisfies a prescribed minimum that will be comparatively larger than that required for redemptions of units in a conventional unit trust. The list of participating dealers can be found at www.uobam.com.sg. An investor may therefore only be able to realise the value of his Units by selling the Units on the Singapore Exchange Limited (“SGX”). Investors should also note that any listing and quotation of Units on the SGX does not guarantee a liquid market for the Units.
An investment in unit trusts is subject to investment risks and foreign exchange risks, including the possible loss of the principal amount invested. Investors should read the Fund’s prospectus, which is available and may be obtained from UOBAM or any of its appointed agents or distributors, before deciding whether to subscribe for or purchase any Units. You may wish to seek advice from a financial adviser before making a commitment to invest in any Units, and in the event that you choose not to do so, you should consider carefully whether the Fund is suitable for you.
The UOBAM FTSE China A50 Index ETF has been developed solely by UOBAM. The UOBAM FTSE China A50 Index ETF is not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). FTSE Russell is a trading name of certain of the LSE Group companies.
All rights in the FTSE China A50 Index vest in the relevant LSE Group company which owns the FTSE China A50 Index. “FTSE®” is a trademark of the relevant LSE Group company and is used by any other LSE Group company under license.
The FTSE China A50 Index is calculated by or on behalf of FTSE International Limited or its affiliate, agent or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the FTSE China A50 Index or (b) investment in or operation of the UOBAM FTSE China A50 Index ETF. The LSE Group makes no claim, prediction, warranty or representation either as to the results to be obtained from the UOBAM FTSE China A50 Index ETF or the suitability of the FTSE China A50 Index for the purpose to which it is being put by UOBAM.
This publication has not been reviewed by the Monetary Authority of Singapore.
UOB Asset Management Ltd. Company Reg. No. 198600120Z
