The Russia-Ukraine conflict has sent rounds of shock waves to the markets, triggering  fears of a supply crunch as Russia is the world’s leading natural gas and crude oil exporter. 

The global market took a hit with oil prices spiking, while volatilities are high in most markets. In the near term, we believe China’s economy will not be significantly impacted,  but still be affected by the ripple effect, mainly on PPI.

We believe the conflict will trigger reassessment of energy strategies among global  policymakers, bringing profound changes in the energy landscape. China will likely place  energy security at higher priority and take a more pragmatic approach to achieve its longterm carbon neutrality goal. Europe also needs to seriously review its energy policy.