To The Moon

The Singapore government is trying to revive the Singapore stock market.

In fact, there is no stock market crash in the Singapore, but the number of IPOs has declined, the valuation is low, and the liquidity is low.

In my opinion, there is no solution to this problem.

The Singapore stock market has became a cash machine for all investors for long time. Almost all stocks are priced based on dividends yeild, and Singapore does not collect dividend tax.

Neither Singapore nor Hong Kong collects dividend tax. Hong Kong's dividend tax on mainland residents is a measure taken by mainland China to protect A-shares.

The Singapore Straits Times Index has two major sectors and one special feature. The first largest sector is local banks, the second largest sector is real estate investment trusts, and a special agricultural stock sector.

The dividends of the three major local banks are currently around 6%.

There is no bubble in Singapore real estate trusts. The price is priced based on net rental income. Currently, Singapore real estate trusts pay dividends of 6-10%. Look at China's housing prices. After deducting financial expenses and maintenance costs, if the rental income of the property has a 5% return, then the housing price is reasonable.

A special feature, agricultural stocks section, for example Wilmar International, has a dividend yield of 5.5%. She has a place in the global agricultural product trade.

The Singapore stock market is all about the old economy. Companies that come to Singapore to list cannot sell at a high price, and some are listed at a discount. For example, the net asset value is 1.0, and the IPO issue price is 0.8.

Strong growth companies go to the United States to list, and the valuation level is higher. The United States attracts talents from all over the world, and the United States attracts companies and capital from all over the world. This phenomenon cannot be changed in the short term.

$STI ETF(ES3.SI)$ 

$NikkoAM-STC Asia REIT(CFA.SI)$ 

$TRACKER FUND(02800)$ 

So I think the Singapore stock market can only maintain the status and be a dividend cash machine. Every year, there are companies that voluntarily delist, and major shareholders raise the price of privatized stocks by 20-30%. Pay 6% dividends to shareholders every year? It is better to delist and save the cost of writing quarterly reports, annual reports, and listing fees.

The Hong Kong and Singapore stock markets are the same.

The Chinese stock market is different. It has been ruined by management. Chinese capital is a closed market, even there are many restrictions on investing in Hong Kong stocks. Domestic capital has no other options, and it spoils the stock market. People buy stocks at high value. In addition, smart Chinese people always find ways to find loopholes in the Chinese stock market and make gray gold and black gold. Gray gold is not a word I invented. Munger used this word. There is also a lot of gray gold in the United States too. Gray gold refers to legal but immoral money, such as financial companies helping a broken company go public to earn income. Those financial companies are always smarter than the regulatory authorities, and loopholes will be discovered. I am not surprised. A more free capital environment will change the Chinese stock market. If your market has a low return rate, then I will invest in other markets and force financial institutions to change their ways.

My personal investment income has been more than 18% in the past three years. I have not invested in the US technology sector, and it has never been cheap. My portfolio are mainly Singapore and Hong Kong dividend stocks.