Oil-based Funds Issue Collective Announcement! Trading Halted for One Hour Today

On March 23, amid a broad market decline, multiple oil funds collectively hit their daily limit-ups, standing out as a rare bright spot.

On the evening of March 23, China Asset Management’s Oil LOF (160723), E Fund’s Oil LOF (161129), Oil Fund LOF (160416), and the S&P Oil & Gas ETF China Asset Management (159518) all announced that they will suspend trading from the market opening on March 24 until 10:30 a.m. that day, also warning of the risk of trading price premiums in the secondary market.

Multiple Oil Funds Announce Suspension of Trading

On the 23rd, Southern Fund’s Southern Oil LOF (501018), China Asset Management’s Oil LOF (160723), E Fund’s Oil LOF (161129), GF Fund’s Oil LOF (162710), and Hu’an Fund’s Oil Fund LOF (160416) all hit their daily limit-up against the trend, becoming the best-performing sector in the market.

Manulife Fund pointed out that over the past month (February 18 to March 20, 2026), geopolitical conflicts have become the dominant market driver, with crude oil and commodities leading the surge. Disruptions in the Strait of Hormuz, increased production cuts in the Middle East to 8.2 million barrels per day, have caused oil prices to continue rising.

According to Wind data, since the beginning of the year, among all LOF funds, the top seven in returns are all oil funds. As of March 23, Southern Oil LOF (501018) gained 62.92% year-to-date, ranking first. China Asset Management’s Oil LOF (160723) and E Fund’s Oil LOF (161129) both increased by nearly 60%, with the other four oil LOFs returning over 24%, leading the entire market.

The influx of funds has also raised market warning signals. On the evening of the 23rd, China Asset Management announced that its China Asset Management Oil Securities Investment Fund (QDII-LOF) (fund code: 160723, in-market abbreviation: China Asset Oil LOF) was trading at a significant premium above its net asset value, with a large premium. To protect investors’ interests, trading will be suspended from the market open on March 24 until 10:30 a.m. that day, resuming trading at 10:30 a.m. on March 24, 2026. The fund has been rising continuously since February, with nearly 48.56% increase over the past month. As of the close on March 23, China Asset Oil LOF (160723) hit a record high of 2.904 yuan.

E Fund also announced that to protect investors’ interests, E Fund’s Oil LOF (161129) will suspend trading from the market open on March 24, 2026, until 10:30 a.m. that day. If the premium in secondary market trading does not effectively decrease by then, the fund reserves the right to request a temporary intraday suspension or extension of suspension from the Shenzhen Stock Exchange to warn the market of risks. The fund has also performed strongly over the past month, with a similar increase of over 48%. As of March 23, it reached a new high of 2.387 yuan.

Additionally, Hu’an Fund specifically reminded that recently, the Hu’an S&P Global Oil Index Securities Investment Fund (LOF) (market abbreviation: Oil Fund LOF, code: 160416) has experienced a large premium in secondary market trading, with trading prices deviating significantly from the previous valuation date’s net asset value. Investors should be aware of the risk of trading price premiums; blind investment could lead to substantial losses. On March 23, Oil Fund LOF (160416) also closed at the daily limit-up, achieving three consecutive positive days.

Oil & Gas Theme Funds Rapidly Filing

Affected by the Middle East situation, oil and gas funds have become a hot topic for capital inflows this year, with new funds emerging rapidly. So far this year, 12 fund companies have filed oil and gas theme funds. Since March, Southern Fund has filed an oil and gas ETF, China Asset Management and E Fund have filed oil and gas ETF-linked funds, and GF Fund has filed an off-market launched index fund focused on oil and gas.

Prior to this, several oil and gas theme products had been approved this year, with six of them being ETFs already issued. Most of these have a size around 200 million yuan.

Huatai Securities’ latest research report pointed out that since the outbreak of the current Middle East conflict, the conflict has generally been escalating, and the market’s pricing of the conflict duration and impact is continuously updating, with probability distributions shifting from “short-term shocks” to “medium-term disturbances.”

The firm also believes that the Middle East situation has caused a global crude oil supply gap, with the mid-term oil price center potentially rising. Considering disruptions in the Strait of Hormuz, full-capacity operation of alternative pipelines in Saudi Arabia and the UAE, potential increased production capacity in North America, and precautionary reductions by domestic refineries, it estimates a short-term global supply gap of about 2 million barrels per day.

Meanwhile, the ongoing blockade of the Strait of Hormuz has led to saturation of oil tanks in some Middle Eastern countries, causing oilfield shutdowns. Coupled with energy security considerations, future storage of crude oil and refined products may be triggered, further pushing up the mid-term oil price center. The forecast for Brent futures in 2026 has been raised to $90 per barrel (previously $78). Leading domestic oil and gas producers are expected to support China’s energy security and independence; with a relatively complete supply chain compared to overseas, industry leaders with full supply chains may benefit.

Layout: Wang Yunpeng

Proofreading: Yang Lilin

(Edited by: Zhang Xiaobo)

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