Chinese investors are betting on stocks they saw potentially benefiting from the conflict in Ukraine, as shares in energy companies and payment services companies rose sharply on Monday on markets in China and a major fund house repeated a warning against speculation.
In a report on On Monday, GF Fund Management said the price of son funds for qualified domestic institutional investors tracking the Dow Jones US Select Oil Exploration and Production index were “significantly higher” than net asset assess.
“Investors who invest blindly in funds to prime high for net asset value may suffer large losses,” the statement said, adding that the fund was operating normally. It was GF second Phone risk statement since Friday after investors’ bets on a jump in oil prices rocked the fund share price higher in secondary markets.
Payments-linked Chinese stocks jumped as investors bet the US and Europe would kick Russia out of SWIFT global Payment system would benefit China’s own cross-border payment system and speed up the development of that of the country digital currency, the e-CNY.
Pawl up sanctions following Russia invasion of Ukraine, the United States and Europe have declared on Saturday they would banish big Russian SWIFT banks and announced other measures to limit Moscow use of a $630 billion war chest.
Investors are speculating on impact of the news pushed shares of leading Chinese companies involved in development digital higher yuan payment infrastructure including Newland Digital Technology Co., Lakala Payment Co. and Client Service International Inc., despite weak in the largest market.
An internet finance sector tracking sub-index jumped more more than 2% ahead in the trading day before cutting gains.
SWIFT sanctions against Russia “is a milestone event which will speed up the process of dedollarization,” wrote Dang Congyu, a analyst at Founder Securities.
“Even though it is hard to replace SWIFT in the short termthis incident is very beneficial for the globalization of the yuan over along run.”
the view was taken over by Guosheng Securities, who recommended the Chinese payment-related actions, citing the potential of China’s own payment systemCIPS and digital yuan, to break the dollar is hegemony.
Against the background of global power competitionla digital yuan” will play a key role in promotion of the yuan global status, and son development will accelerate,” analysts Liu Gaochang and Yang Ran wrote.
China CSI Defense Sub-Index also leaps on Monday, climbing more from 2.5% to one point, while the energy shares increased by 1.6%, against a 0.35% drop in the CSI300 prime index.
