As Middle East conflicts drive dramatic swings in global oil prices, the suspension of navigation through the Strait of Hormuz has become a worldwide focus, emerging as a key factor influencing the future direction of the global economy. The Strait of Hormuz, situated between Oman and Iran, connects the Persian Gulf, the Gulf of Oman, and the Arabian Sea. It is deep and wide enough to accommodate the world's largest crude oil tankers, making it one of the most critical petroleum chokepoints globally. The average daily oil flow through Hormuz is 20.9 million barrels, representing approximately 20% of global liquid petroleum consumption. However, real-time data from international tanker traffic monitoring systems indicates that vessel movements in the waters around the Strait of Hormuz have nearly stalled.
Amid these developments, the prominent ETF provider Hua Bao Fund has launched its significant new product—the Petroleum ETF Hua Bao (159019)—today, March 25. This fund tracks the Guozheng Petroleum and Natural Gas Index, whose portfolio covers 50 A-shares across various segments of the petroleum and natural gas industry, including exploration and development, equipment and services, and gas transmission and distribution. It offers investors another major ETF tool to capture investment opportunities in core assets tied to "China's oil power."
Full-Chain Coverage: One-Click Access to A-Share Oil and Gas Leaders
Against the backdrop of uncertain developments in U.S.-Israel-Iran tensions, China's oil and gas industry is increasingly highlighting its role as a cornerstone of the nation's "energy security" strategy. A recent article by an official from the National Energy Administration's Oil and Gas Department outlined the direction for China's oil and gas sector during the "15th Five-Year Plan" period, emphasizing the industry's strategic importance in ensuring supply, enabling transformation, and fostering coordinated development. Key future directions include advancing exploration, increasing reserves and production, maintaining high investment intensity, integrating oil and gas with new energy sources like hydrogen and green fuels, accelerating digital and intelligent oilfield development, and upgrading oil and gas enterprises into comprehensive energy service providers.
The Petroleum ETF Hua Bao (159019) tracks the Guozheng Petroleum and Natural Gas Index (399439), which selects stocks from the CSI All-Share Index whose businesses are involved in oil and gas exploration, equipment and services, and gas distribution. The index applies weighting adjustment factors to ensure that during periodic rebalancing, no single stock in exploration and development or equipment and services exceeds 15% weighting, while stocks in other sectors do not exceed 3%. The combined weight of the top five constituents is capped at 60%.
As of March 8, 2026, the index comprises 50 stocks spanning the oil and gas industry. By Shenwan primary industry classification, oil and petrochemicals account for 58.62% of the index, reflecting a high concentration in core sectors. At the Shenwan tertiary industry level, refining, extraction, equipment, and gas distribution represent 25.38%, 16.64%, 14.5%, and 13.7%, respectively, indicating a relatively balanced distribution across key oil and gas segments. The portfolio combines value and growth characteristics, with large-cap state-owned enterprises providing stable earnings and dividends, while small- and mid-cap companies capture opportunities in segments like oil services and transportation.
Oil and Gas Strength: Combining Dividend Attributes and Profitability
The Guozheng Petroleum and Natural Gas Index has demonstrated strong long-term performance since 2021, outperforming peer indices on metrics such as returns and drawdowns. From January 4, 2021, to March 12, 2026, the index's total return version achieved an annualized return of 21.08%, significantly higher than the 19.32% return of a comparable oil and gas industry index and substantially exceeding the 0.38% return of the CSI 300 Index. This highlights its strong performance during energy cycle upswings. Over the same period, the index's maximum drawdown was -27.82%, notably lower than the CSI 300's -41.56%, indicating greater resilience during market downturns. Its Sharpe ratio of 0.88 also reflects superior risk-adjusted returns compared to both peer indices and the CSI 300.
The index's historical trajectory closely correlates with oil prices, moving in sync with Brent crude. While it faces pressure during oil price declines, recent price rebounds have driven a noticeable recovery. China's energy security policies are fueling long-term resource development investments, and high dividend strategies of state-owned enterprises are attracting sustained capital allocation, gradually shifting the sector's profile from cyclical to dividend-focused. As of March 12, 2026, the index's trailing 12-month dividend yield stood at approximately 3.18%, significantly higher than that of the CSI 300 and petrochemical industry indices, placing it in the upper range among major energy indices. In the current low-interest-rate environment, where investors favor high-dividend assets, the index is well-positioned to continue offering attractive cash returns.
In the index investment space, Hua Bao Fund adheres to the principle of serving the real economy through finance, consistently launching ETFs with long-term viability under the guidance of professional, value-driven, and long-term investment philosophies. The firm has established a diverse ETF matrix covering themes such as AI industrial chains, cyclicals, consumption, healthcare, high dividends, and major broad-based indices. As of March 20, 2026, Hua Bao Fund's equity ETF assets under management reached 132.185 billion yuan, securing a top-ten industry ranking. Its cyclical index product suite—including the Chemical ETF Hua Bao (516020) and its feeder funds, the Nonferrous Metals ETF Hua Bao (159876) and its feeder funds, the Agriculture, Livestock, and Fishery ETF Hua Bao (159275) and its feeder funds, and the Hua Bao Oil and Gas LOF (162411)—is particularly distinctive. As of March 20, the Chemical ETF Hua Bao had assets exceeding 6.5 billion yuan, while the Nonferrous Metals ETF Hua Bao held 1.934 billion yuan, with average daily turnover surpassing 100 million yuan in the past month, leading in both size and liquidity among three ETFs tracking the same index. The Hua Bao Oil and Gas LOF is the largest fund of its kind in the market. The launch of the Petroleum ETF Hua Bao (159019) adds a critical component to the firm's cyclical ETF matrix.
Special reminder: Recent market volatility may be significant, and short-term performance is not indicative of future results. Investors should make rational decisions based on their financial situation and risk tolerance, with careful attention to position sizing and risk management.
ETF fee information: When subscribing or redeeming fund shares, agents may charge a commission of up to 0.5%, which includes fees levied by exchanges and registration institutions. For offshore fund rates, please refer to the fund's legal documents.
Note: As of December 31, 2025, there were seven domestic oil-themed LOFs, with the Hua Bao Oil and Gas LOF being the largest and most liquid at 2.143 billion yuan in assets and average daily turnover exceeding 47 million yuan over the past six months.
Data sources: Shanghai Stock Exchange, Shenzhen Stock Exchange, Hong Kong Exchanges, etc.
Risk disclosure: The Petroleum ETF Hua Bao passively tracks the Guozheng Petroleum and Natural Gas Index, which has a base date of December 31, 2002, and was launched on December 30, 2014. The index's performance over the past five full years is as follows: 2021: 27.53%; 2022: 0.05%; 2023: 7.01%; 2024: 10.90%; 2025: 10.13%. Index constituents are adjusted according to its methodology, and past performance does not guarantee future results.
The fund manager rates the Petroleum ETF Hua Bao and Hua Bao Oil and Gas LOF as R4 (medium-high risk), suitable for aggressive (C4) and higher-risk-tolerance investors. The Chemical ETF Hua Bao and its feeder funds, Nonferrous Metals ETF Hua Bao and its feeder funds, and Agriculture, Livestock, and Fishery ETF Hua Bao and its feeder funds are rated R3 (medium risk), appropriate for balanced (C3) and higher-risk-tolerance investors.
These funds are issued and managed by Hua Bao Fund. Distributors are not responsible for investment, redemption, or risk management of the products. Investors should carefully read the fund contract, prospectus, and key facts statement to understand the funds' risk-return characteristics and select products matching their risk tolerance. Sales agencies (including the fund manager's direct sales and other distributors) assess fund risks per relevant regulations; investors should consider the suitability opinions provided by sales agencies, which may vary. Sales agencies' risk ratings cannot be lower than the fund manager's assessment. Risk-return profiles and risk ratings in fund documents may differ due to varying evaluation factors. Investors should understand fund risks and returns, align investments with their goals, horizon, experience, and risk tolerance, and assume investment risks independently. CSRC registration does not guarantee a fund's value, prospects, or returns. All information presented is for reference only, and investors are solely responsible for their investment decisions. Views, analyses, and forecasts herein do not constitute investment advice, and no liability is accepted for direct or indirect losses resulting from use of this content. Past performance and net asset value do not indicate future results, and performance of other funds managed by the fund manager does not guarantee these funds' performance. All investments involve risk; caution is advised.
MACD golden cross signals have formed, with several stocks showing positive momentum.
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