The chemical sector delivered a standout performance on Wednesday (September 3rd), with notable gains across petrochemicals, lithium batteries, and synthetic resins. By the market close, Eastern Shenghong had climbed over 6%, Hengli Petrochemical rose more than 4%, and other names like Senior Material, Hangyang, and Blue晓科技 also posted solid gains. The benchmark index tracking the Hwabao Chemical ETF (516020), the Subdivided Chemical Index, finished the session up 0.96%.

On the news front, the National Development and Reform Commission and the National Energy Administration have jointly issued a notice unveiling the Oil and Gas Development "15th Five-Year Plan", setting a clear direction for the industry over the next half-decade. The plan sets ambitious targets for 2030, including domestic oil and gas supply reaching 440 million tonnes of oil equivalent, the addition of 20,000 kilometres of new long-distance oil and gas pipelines (bringing the national total to 220,000 kilometres), natural gas storage capacity exceeding 13% of national consumption, LNG receiving terminal capacity of 200 million tonnes per year, cross-border pipeline gas import capacity of 114 billion cubic metres annually, and CCS/CCUS projects injecting 10 million tonnes of CO2 per year.

Analysts suggest the notice aims to accelerate high-quality development in the oil and gas sector, actively promote and achieve carbon peaking alongside a peak in oil consumption. It also emphasises deepening green and low-carbon transformation, fostering integrated development within the oil and gas space, safeguarding domestic energy security, pushing for accelerated transformation and upgrading of the refining and refined products industry, and underlining its critical role in building a new energy system and a modern oil and gas industrial framework.

From a valuation perspective, data indicates that as of Tuesday's (September 2nd) close, the Subdivided Chemical Index had a price-to-earnings ratio of 18.29 times, sitting at a relatively low 32.35th percentile over the past decade (source: Wind). This highlights its increasingly attractive medium-to-long-term valuation outlook. For reference, the index's annual returns over the last five full years were: 2025: +41.09%; 2024: -3.83%; 2023: -23.17%; 2022: -26.89%; 2021: +15.72%. Its volatility over the same periods was 20.43%, 30.05%, 15.07%, 24.99%, and 32.02% respectively.

Looking ahead, Guosen Securities notes that the cost and efficiency advantages of China's leading chemical firms are now firmly established, with top-tier companies entering a phase of long-term earnings expansion. Meanwhile, for certain sectors with constrained supply, rising demand is expected to keep industry prosperity on an upward trajectory, making them worthy of close attention.

For investors seeking to capitalise on the chemical sector's rebound, the Hwabao Chemical ETF (516020) offers a potentially efficient route. Public data shows the ETF tracks the CSI Subdivided Chemical Industry Theme Index, whose constituents span popular themes like AI computing power, anti-involution, robotics, and new energy. Off-market investors can also gain exposure through the fund's feeder funds (Class A: 012537, Class C: 012538).

Source: Shanghai and Shenzhen stock exchanges, as of September 3, 2026. Institutional views: Guosen Securities' September 2, 2026 weekly report on the basic chemicals sector, titled "Hydrochloric Acid Prices Rise; Bullish on Global Chemical Anti-Involution Cycle and AI Demand Cycle".

Fee disclosure: When subscribing or redeeming fund shares, broker-dealers may charge commissions of up to 0.5%, which includes fees levied by stock exchanges and registration institutions. The Hwabao Chemical ETF does not charge sales service fees. Subscription fees for the Feeder Fund Class A are: 1% for amounts below 1 million yuan; 0.6% for amounts between 1 million (inclusive) and 2 million yuan; and a flat 1,000 yuan per transaction for amounts of 2 million yuan (inclusive) or more. Redemption fees for Class A are: 1.5% within 7 days; 0.5% from 7 days (inclusive) to 180 days; and 0% from 180 days (inclusive) onwards. Redemption fees for Feeder Fund Class C are: 1.5% within 7 days and 0% from 7 days (inclusive) onwards. The sales service fee is 0.2%.

Risk warning: The Hwabao Chemical ETF passively tracks the CSI Subdivided Chemical Industry Theme Index, whose base date is December 31, 2004, and which was published on April 11, 2012. Index constituent stocks are adjusted periodically according to the index methodology, and backtested historical performance does not indicate future index performance. Companies mentioned in this article are solely for illustrative purposes as index constituents and do not constitute stock recommendations or represent the fund manager's or the fund's investment direction. Any information in this article (including but not limited to stocks, comments, forecasts, charts, indicators, theories, or any form of expression) is for reference only, and investors are solely responsible for their own investment decisions. Furthermore, any views, analyses, or forecasts herein do not constitute investment advice of any kind to readers and do not bear any liability for direct or indirect losses arising from the use of this content. Investors should carefully read fund legal documents such as the Fund Contract, Prospectus, and Fund Product Information Summary to understand the fund's risk-return profile and select products suited to their own risk tolerance. Past performance does not indicate future returns, and performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. According to the fund manager's assessment, the Hwabao Chemical ETF carries a risk rating of R3-Moderate Risk, suitable for balanced (C3) and above investors; please refer to the sales institution for suitability matching opinions. Sales institutions (including the fund manager's direct sales and other distributors) evaluate the above funds based on relevant laws and regulations; investors should promptly review suitability opinions issued by the fund manager, which may not be consistent across sales institutions, and the risk level ratings issued by fund sales institutions shall not be lower than those issued by the fund manager. Differences exist between the risk-return characteristics described in the Fund Contract and the fund's risk rating due to varying considerations. Investors should understand the fund's risk-return profile and carefully select fund products based on their own investment objectives, horizon, experience, and risk tolerance, bearing risks themselves. Registration of the above funds by the China Securities Regulatory Commission does not imply any substantive judgment or guarantee of the funds' investment value, market prospects, or returns. Investors should invest cautiously in funds.