--- title: "Geopolitical conflicts are recurring, institutions: Under the background of energy autonomy and controllability, photovoltaic valuation repair is expected" type: "News" locale: "en" url: "https://longbridge.com/en/news/282121395.md" description: "Against the backdrop of escalating geopolitical conflicts, funds are flowing into the new energy sector, with the China Merchants CSI Photovoltaic Industry ETF (516230) seeing a net inflow of over 100 million yuan for five consecutive days. Dongfang Securities pointed out that the importance of new energy power generation is increasingly prominent, and a valuation recovery in the photovoltaic industry is expected. It is anticipated that by 2025, the proportion of public funds' holdings in the photovoltaic industry will significantly increase. Huatai Securities and CITIC Securities also have a positive outlook on the growth potential of the photovoltaic industry, especially driven by policy support and the increasing demand for space photovoltaic" datetime: "2026-04-09T02:04:13.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/282121395.md) - [en](https://longbridge.com/en/news/282121395.md) - [zh-HK](https://longbridge.com/zh-HK/news/282121395.md) --- # Geopolitical conflicts are recurring, institutions: Under the background of energy autonomy and controllability, photovoltaic valuation repair is expected On April 9, the US-Iran conflict encountered another setback, and the A-share market opened lower and fluctuated. Under geopolitical uncertainty, funds shifted to the new energy sector with **low valuations and upward potential**. The **China Merchants CSI Photovoltaic Industry ETF (516230)** has seen a net inflow of over 100 million yuan for five consecutive days, indicating significant signs of bottom-fishing. Dongfang Securities pointed out that the importance of energy self-sufficiency has become increasingly prominent under geopolitical conflicts. New energy generation is not only low-carbon energy but also a self-controlled energy source with almost zero external dependence. In the AI era, global energy consumption is expected to maintain a growth trend, and accelerating the development of new energy will become an inevitable choice for fossil fuel-importing countries (such as China and various European countries). Therefore, **geopolitical conflicts will become a catalyst for a new round of growth in global new energy installations, and the currently low new energy generation sector is expected to welcome good layout opportunities.** Data shows that as of June 30, 2025, the proportion of public funds' holdings in the photovoltaic industry is only 1.16%, which has significant room for growth compared to the 5.69% disclosed in the 2022 mid-year report. Dongfang Securities believes that the photovoltaic sector is overall "under-allocated," and marginal expectation improvements are likely to lead to valuation recovery. **In addition,** **the "computing power and electricity synergy" policy** **and continuous capital actions in space photovoltaic** **are further opening up growth space for domestic photovoltaic.** China is actively promoting the construction of a new power system, with new energy as the main energy supply being a key feature of this system. According to the State Grid's forecast, the energy composition of the future new power system will consist of about 30-40 billion kilowatts of conventional power sources and 70 billion kilowatts of centralized **wind and solar power plants, distributed photovoltaic, offshore wind power**, etc., with the proportion of renewable energy supply expected to exceed 70%. Huatai Securities pointed out that from 2025, the "green electricity direct connection" policy will frequently emerge, and "computing power and electricity synergy" will be included in the government work report for the first time in 2026, rising to the strategic level of national new infrastructure. **"Computing power" and "electricity" will move towards each other, and photovoltaic may achieve** **50%+ value-added** **.** At the same time, demand for space photovoltaic is expected to experience exponential growth. CITIC Securities believes that leading photovoltaic equipment manufacturers in China possess strong capabilities for efficient iteration and rapid response, and are likely to enter the supply chains of related equipment for Tesla and SpaceX, gaining substantial orders. Space photovoltaic equipment may have significant inflation effects, and its value is expected to achieve a leap in enhancement, opening up new growth space for the photovoltaic industry According to the data, the China Merchants CSI Photovoltaic Industry ETF (516230) closely tracks the CSI Photovoltaic Industry Index, covering the core photovoltaic industry chain, including photovoltaic battery modules (22.6%), inverters (16.4%), power transmission and transformation equipment (10.9%), photovoltaic processing equipment (10.5%), silicon materials and wafers (7.8%), and panels (7.2%). The top ten holdings include leading companies such as TBEA, LONGi Green Energy, Roborock, Mibet, Sungrow Power, and TCL Technology. 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