Jan. 16, 2007 (China Knowledge) – Standard and Poor's Equity Research has tipped five Mainland Chinese companies to outperform their global peers and deliver superior returns to investors this year.

The companies selected for the S&P 30-stock global portfolio are: China Construction Bank (CCB), China Mengniu Dairy, China Oilfield Services, China Southern Airlines, and Datang International Power.

The rating agency said CCB will continue to enjoy robust loan growth, China Mengniu will benefit from the country's rising use of dairy products and China Oilfield will achieve sustained growth because of increased exploration and production.

China Southern is set to take advantage of appreciation of the RMB, and Datang Power's output growth should offset plant utilization rates, S&P added.

Besides the Mainland firms, Hong Kong-based Henderson Land Development and Hutchison Telecommunications as well as Taiwan's AU Optronics are also part of the portfolio.

According to S&P, its 30-stock global portfolio is designed to exceed the total return of the benchmark S&P Global 1200 index during 2007. A similar 2006 portfolio generated a 30.8% yearly return, compared with a 21.5% gain on the S&P 1200 index, it said.