The oil and petrochemical sector advanced against the broader market trend today (May 8). Huabao's Oil ETF (159019), which provides one-click exposure to the entire oil and gas industry chain, turned positive before the midday break. As of the latest update, its on-market price has risen by 0.1%.
Among its constituent stocks, Heshun Petroleum and Hengtong Co., Ltd. both surged over 5%, while China Merchants Energy Shipping gained more than 4%. COSCO SHIPPING Energy Transportation, SPT Energy Group, and Lanshi Heavy Equipment also featured among the top gainers.
On the news front, the U.S. "Freedom Plan," aimed at facilitating the passage of stranded vessels through the Strait of Hormuz, was suspended less than 48 hours after its initiation. U.S. officials stated that the operation, launched without prior coordination with Gulf allies, provoked dissatisfaction from Saudi Arabia. A phone call between U.S. President Trump and Saudi Crown Prince and Prime Minister Mohammed bin Salman failed to resolve the issue, compelling President Trump to halt the "Freedom Plan."
Guojin Securities noted that geopolitical conflicts have caused significant volatility, with the international crude oil price benchmark for Q1 2026 rising markedly. The average crude oil price increased both year-on-year and quarter-on-quarter, with price fluctuations intensifying. Upstream leading companies are benefiting from high oil price dividends, resulting in substantial year-on-year and quarterly improvements in the sector's overall profitability and a continuous optimization of operational quality. In the refining sector, long-term prospects appear positive due to domestic measures against internal competition and strict control over capacity expansion, coupled with the ongoing exit of overseas refining capacity. This is leading to a sustained recovery in sector sentiment, highlighting the profit resilience of leading enterprises.
Looking ahead, China Galaxy Securities believes the current crude oil market remains focused on developments in the Middle East geopolitical situation. It is anticipated that Brent crude prices may continue to trade near the high level of $100 per barrel in the short term. The firm advises closely monitoring progress in U.S.-Iran negotiations, the transit situation in the Strait of Hormuz, and the operational status of Iranian petroleum production facilities. Continued attention is recommended for assets in oil and gas, coal chemicals, and light hydrocarbon chemicals.
To gain one-click exposure to the entire oil and gas industry chain and capture the dividends of the energy security era, focus on Huabao's Oil ETF (159019). This ETF tracks the CNI Oil & Gas Index, whose portfolio of constituent stocks provides comprehensive coverage of 50 A-shares across related sectors of the petroleum and natural gas industry, including exploration and production, equipment and services, and gas transmission and distribution. The "Big Three" Chinese oil companies comprise over 40% of the index weighting.
Note: For detailed fee information, please refer to the respective fund's legal documents. Source: SSE, SZSE, etc., as of May 8, 2026. Reminder: Recent market volatility may be significant; short-term gains or losses are not indicative of future performance. Investors must make rational investment decisions based on their own financial situation and risk tolerance, paying close attention to position sizing and risk management.
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