Investors predict that the war in Iran will increase Chinese demand for renewable energy

Investors rush into Chinese renewable stocks, betting that the oil shock caused by the Iran War will boost global demand for the green energy sector, which China dominates.

This portfolio?trend, spurred by?heightened concerns about energy security?and 'growing distrust of the U.S.'s reliability contrasts with the United States returning to oil and gas.

"As you step back and the dust settles, or the price of crude oil begins to drop,... the countries need to now focus on energy safety," Aaron Costello, head Asia at Cambridge Associates told a Hong Kong conference on Monday.

They need to build up their renewable energy, their energy grids. Maybe more nuclear power. And they should focus more on defense. The U.S. The?U.S.

Since the U.S. and Israel war against Iran erupted in February 28, money is moving?into Chinese stock markets, ranging from solar energy and wind power to electric?vehicles?and batteries.

The CSI Green -Electricity Index grew 6% in march, while the CSI New Energy Index grew 2%. This is despite the Shanghai Composite Index, the benchmark index, falling 8% due to panic buying triggered by war.

Solar energy giant GCL Energy Technology has soared 48% in the first month of this year.

Battery king Contemporary Amperex Technology is up 15%, and China Nuclear Power?Co has increased by 8%.

Yuan Yuwei is a hedge-fund manager at Trinity Synergy Investments. He said that he has made long bets in China's renewables. He believes they will benefit from "state support" and increased export demand.

Yuan said that, in the face of war and the resulting oil shock, China will "definitely" increase its investment in the energy sector.

He also said that "after this conflict, people will have second thoughts about gas-powered vehicles", a trend which he believes will be beneficial to Chinese battery and electric vehicle manufacturers.

Lin Sheng, Shenzhen's chief investment officer for Wish Fund Management Co., says that the current energy crises will prompt many countries to pay more attention to their energy security and overall energy mix. This will increase Chinese renewables exports.

He said that some of the sectors affected by oversupply would become profitable in the future. The stock market correction is a great opportunity to purchase Chinese renewables. (Editing by Kevin Buckland; Additional reporting by Li Gu)

(source: Reuters)