0323 GMT - The Mideast conflict has contributed to heightened oil price volatility, but the impact on China's economy remains contained, Pictet Asset Management Cary Yeung says in a note. Oil and natural gas account for only around 20% of China's energy mix, with renewable energy and coal still dominating, he says. Although 30% to 40% of China's oil imports transit the Strait of Hormuz, supply risk is mitigated by China's ability to diversify sourcing to Russia and Latin America, he says. Market consensus indicates that a 10% rise in oil prices would lift China's PPI by around 1%. With mild deflationary pressures, moderate inflation is not necessarily negative for China, he adds. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

March 11, 2026 23:23 ET (03:23 GMT)

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