Investors are rushing into Chinese renewable stocks, betting the oil shock triggered by the Iran war will boost global demand for green ​energy, a sector China dominates.

Such a portfolio trend in Asia, spurred by heightened ‌worries about energy security and growing distrust in the U.S.’s reliability, contrasts with a shift in the United States back toward oil and gas.

“When you take a step back, the dust settles or the price of ​oil starts to come back down, whatever that may be … countries now need to ​focus on energy security,” Aaron Costello, head of Asia at Cambridge Associates, ⁠told a conference in Hong Kong on Monday.

“They need to further build out their renewables, ​build out their energy grids, maybe more nuclear power, and more focus on defence.

The US has ​become, if not unreliable, certainly more erratic.“

Since the US-Israeli war against Iran erupted on February 28, money has been moving into Chinese stocks in areas ranging from solar and wind energy to electric vehicles and batteries.

The ​CSI Green Electricity Index has climbed 6% in March, while the CSI New Energy Index ​is up 2%, despite the benchmark Shanghai Composite Index slumping 8% amid war-induced panic selling.

Industry leaders have outperformed, ‌with ⁠solar energy giant GCL Energy Technology surging 48% so far this month.

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

Yuan Yuwei, a hedge fund manager at Trinity Synergy Investments, said he’s made long bets on China’s renewables, judging they will ​benefit from state support ​and higher export ⁠demand.

Against the backdrop of the war and resulting oil shock, “China will definitely boost energy investment”, said Yuan.

In addition, “after this war, people would have ​a second thought on gas-powered cars”, a trend that will benefit ​Chinese electric vehicle ⁠makers and battery producers, he said.

Lin Sheng, Shenzhen-based chief investment officer at Wish Fund Management Co, said that the current energy crisis will prod many countries to pay attention to energy security ⁠and their ​overall energy mix, which will increase Chinese renewables exports.

“Some ​of these sectors suffering from oversupply will turn quite profitable going forward,” he said, adding the stock market correction provides ​a very good opportunity to buy Chinese renewables.