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Chinese investors have snapped up shares in companies with Russia-related supply chain activities, on expectations of increased business between Moscow and Beijing following Western countries’ sanctions on Russia.

These companies are in the so-called “China-Russia trade concept” index, which include container lines and port operators. The index has jumped more than 20% since February 28, data from financial data provider iFinD showed.

Among them, Jinzhou Port, located in China’s north Liaoning Province, close to Russia, reached its 10% price limit for six consecutive sessions on the Shanghai Stock Exchange.

“Investors expected Russia to cooperate with China more, pushing up related stocks, especially logistics,” said Ade Chen, General Manager at Fund Investment in Guangzhou.

Jinzhou Port was asked by investors via the Shanghai Stock Exchange’s investor relations platform how the Russia-Ukraine war would affect the company’s revenue. It said it “cannot judge how the war will go, let alone the relationship between an overseas war and performance of a domestic listed company.”

Xinjiang Tianshun Supply Chain, another company which also jumped 10% in six straight sessions, said its Russian-related business accounts for a relatively small portion of its revenue.

“It’s highly uncertain to bet on those stocks,” Chen said, adding their future performances depend on whether those expectations can come true.

China and Russia have grown increasingly close as trading partners in recent years, with China becoming Russia’s biggest export destination.

China’s customs agency on Feb. 24 approved imports of wheat from all regions of Russia. China will not join in sanctions on Russia that have been led by the West, the country’s banking regulator said.

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