Azernews.Az

By Alimat Aliyeva

Investors are flocking to China’s renewable energy stocks, betting that the oil shock triggered by the ongoing Iran conflict will accelerate global demand for green energy—a sector where China holds a dominant position, AzerNEWS reports, citing foreign media.

This surge in Asian portfolios, driven by rising concerns over energy security and growing skepticism about the U.S.’s reliability, contrasts sharply with the U.S. market, where capital is shifting back toward oil and gas.

“When you take a step back, the dust settles, or the price of oil starts to come back down… countries now need to focus on energy security,” said Aaron Costello, head of Asia at Cambridge Associates, speaking at a conference in Hong Kong on Monday. “They need to further build out renewables, expand energy grids, consider more nuclear power, and even strengthen defence. The U.S. has become, if not unreliable, certainly more erratic.”

Since the February 28 U.S.-Israeli military operation against Iran, capital has flowed into Chinese stocks spanning solar, wind, electric vehicles, and battery technology. The CSI Green Electricity Index has surged 6% in March, while the CSI New Energy Index is up 2%, despite the benchmark Shanghai Composite Index dropping 8% amid war-induced panic selling.

Leading companies have outperformed sharply: solar giant GCL Energy Technology has jumped 48% this month, battery leader Contemporary Amperex Technology is up 15%, and China National Nuclear Power has gained 8%.

Hedge fund manager Yuan Yuwei of Trinity Synergy Investments said he has taken long positions in Chinese renewable stocks, expecting them to benefit from strong state support and rising export demand. “China will definitely boost investment in energy,” he said. “After this war, people will rethink gas-powered cars,” a shift that could further benefit electric vehicle and battery producers.

Lin Sheng, Shenzhen-based chief investment officer at Wish Fund Management, added that the current energy crisis is likely to prompt many countries to reassess their energy security and diversify their energy mix, which could drive exports of Chinese renewables even higher.

“Some sectors that were previously suffering from oversupply could become highly profitable going forward,” Lin said, noting that the recent stock market correction offers a prime opportunity to invest in China’s green energy companies.

Analysts also point out that this trend could accelerate China’s global leadership in clean energy, making it not just a manufacturing hub but a key driver of the global energy transition over the next decade.