Singapore-listed China shares among best performers on SGX, with FTSE ST China Index +2.2% vs STI +1.3%, in response to Beijing’s call for greater yuan flexibility, says Dow Jones.

“The RMB policy move is mildly positive for S-chips in general as it translates to higher EPS in SGD terms,” says DBS Vickers; noting Chinese companies dependent on domestic demand should gain from lower import costs as they sell their products in China.

Cites Midas Holdings (5EN.SG), China Animal Healthcare, China Merchants Holdings (C22.SG) as beneficiaries. But adds stronger yuan may be negative for pure China exporters as well as Singapore-based manufacturers with costs booked in yuan but revenue in USD or EUR.

Flags HTL International (H64.SG), Cosco (F83.SG), Yangzijiang (BS6.SG), JES International (EG0.SG), Broadway Industrial (B69.SG), Meiban (M24.SG) as vulnerable.