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 increase?global green energy demand, a sector China dominates.

This 'portfolio' trend in Asia is a result of growing concerns about energy security in Asia and a growing distrust for Washington. It contrasts with the United States, which has shifted back to oil and gas.

Aaron Costello, Cambridge Associates' head of Asia, said at a conference in Hong Kong that countries should now focus on energy security.

They need to build their renewables and energy grids further, perhaps 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, money has moved into Chinese stocks?in a range of areas ranging from wind and solar energy to electric cars 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-induced selling.

Solar energy giant GCL Energy Technology has risen by 48% in the last month.

Battery king Contemporary Amperex Technology is up 15%, and China National Nuclear Power Co. is up 8%.

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

Yuan said that, in the face of the oil crisis and the war, China will "definitely boost its investment in energy".

He said that "after the war, people will have second thoughts about gas-powered vehicles", a trend which will benefit Chinese battery and electric vehicle manufacturers.

OIL CRISIS Boosts Demand for Renewable Energy

Lin Sheng is the chief investment officer of Wish Fund Management Co. She said that due to the current energy crisis, many countries will pay more attention to their energy?security, and to their overall energy mix. This will lead to an increase in Chinese renewables exports.

He said that some of the sectors affected by oversupply will become quite profitable in the future. The stock market correction is a great opportunity to purchase Chinese renewables.

China's clean technology exports and electricity output already reached record levels in 2025.

Goldman Sachs noted that China's dominance in key industries, such as electric vehicles, batteries and power generation equipment, could lead to increased Chinese exports in 2027.

Ulrik Fugmann, co-head of Environmental Strategies Group, said that Europe is already experiencing "tectonic changes for energy transition". The continent has begun to revisit nuclear energy and build a more resilient infrastructure.

He told a podcast that "the?cost, and the prolonged cost of fossil fuel shocks, far outweighs" the investment needed to continue building out renewables.

The relationship between renewables and energy security, as well as geopolitics, has motivated real changes, which have accelerated since the war," Fugmann said. He predicts that renewables will experience a multi-year revival. (Additional reporting and editing by Kevin Buckland; Li Gu)

(source: Reuters)