Morgan Stanley China Energy: Energy Security Preferred Stocks
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Morgan Stanley emphasizes that escalating geopolitical tensions, particularly concerning Venezuela and Iran, highlight the strategic necessity of securing reliable domestic energy supplies and reducing overseas exposure. The firm frames Chinese energy security as a cross-asset investment theme rather than an isolated sector trade. China is taking a pragmatic approach to de-risking its entire energy system, rather than depending on a single solution.
This strategy encompasses traditional oil and gas alongside what Morgan Stanley terms "new oil" sectors, including batteries, energy storage, domestic coal, and renewables. Within traditional oil and gas, preferred stocks include PetroChina (857.HK/601857.SS), Sinopec (386.HK/600028.SS), and CNOOC (883.HK). For domestic coal, the firm favors Yancoal Australia (3668.HK), China Shenhua Energy (1088.HK/601088.SS), Yankuang Energy Group (1171.HK), and China Coal Energy (1898.HK/601898.SS).
In the "new oil" space covering batteries and related supply chains, preferred picks feature CATL (300750.SZ), BYD (1211.HK/002594.SZ), Ganfeng Lithium (1772.HK/002460.SZ), Tianqi Lithium (9696.HK/002466.SZ), and Zijin Mining (2899.HK/601899.SS). The renewables sector preferences include China Yangtze Power (600900.SS), Jiangsu Zhongtian Technology (600522.SS), Ningbo Orient Wires & Cables (603606.SS), Sieyuan Electric (002028.SZ), and NARI Technology (600406.SS). Closing prices for these preferred stocks were recorded as of March 6, 2026.