The oil and petrochemical sector has maintained its strong momentum today (August 17th). The Huabao Oil ETF (159019), which offers a one-stop investment in the entire oil and gas supply chain, surged rapidly after the market open, with its intraday price briefly climbing over 2%. As of press time, it was up 1.98%. In terms of component stocks, as of press time, Jereh Group soared over 8%, while Hongtian Co., Ltd., Heshun Petroleum, and COSCO Shipping Energy Transportation each gained more than 4%. Potentas, China Merchants Energy Shipping, and Taishan Petroleum were also among the top gainers.

On the news front, international crude oil prices continue to fluctuate. Last week, Iran proposed banning adversaries from transiting the Strait of Hormuz, imposing heavy penalties on violators, while the Houthi group continued to strike Saudi-related shipping and facilities. Subsequently, Iran introduced preconditions for Strait navigation, and both the US and Iran filed claims for compensation over conflict losses, making the prospects for a navigation agreement appear bleak. Guosen Securities stated that the turbulent geopolitical situation in the Middle East, combined with disruptions in the Strait of Hormuz and the Bab el-Mandeb Strait, along with the suspension of the Caspian Sea oil pipeline, has significantly contracted the stable supply of global crude oil. Amid the current peak summer demand season in the Northern Hemisphere, low inventory levels amplify price elasticity. In a high oil price environment, upstream oil and gas companies exhibit strong profit flexibility, and companies with low-cost advantages, such as coal-to-olefins and overseas integrated refining enterprises, are expected to benefit significantly.

CITIC Securities noted that during the closure of the Strait, some oil wells are forced to shut down, and prolonged closures could lead to permanent capacity losses. In the long term, against a backdrop of low capital expenditure, the number of drilled but uncompleted wells and new drilling rigs in the United States has hit record lows, indicating that high US crude oil production is unsustainable. Future surplus supply and pricing power are likely to be held by the Middle East. However, the probability of war during the bottom of the Kondratiev wave depression is increasing, making real-world conflicts more pronounced and systematically raising the risk premium for energy assets. For a one-stop investment in the entire oil and gas supply chain to capture the dividends of the energy security era, investors should focus on the Huabao Oil ETF (159019).

The Huabao Oil ETF (159019) tracks the Guozheng Oil and Gas Index, which is comprised of a portfolio of 50 A-share stocks covering the entire oil and gas industry chain, including oil and gas exploration and development, oil and gas equipment and services, and gas transmission and distribution sales. The "Three Major Oil Companies" account for nearly 40% of the index. Note: Fees are detailed in the fund's legal documents. Source: Shanghai and Shenzhen stock exchanges, etc., as of August 17, 2026. Reminder: Recent market volatility may be significant, and short-term gains or losses do not predict future performance. Investors must make rational investment decisions based on their own financial situation and risk tolerance, paying close attention to position and risk management.

Risk Disclosure: The Huabao Oil ETF passively tracks the Guozheng Oil and Gas Index, which has a base date of December 31, 2002, and was published on December 30, 2014. The constituent stocks of the index are adjusted in a timely manner according to the index's compilation rules. The backtested historical performance of the index does not guarantee future index performance. The stocks mentioned in the article are only presented as an objective display of the index's constituent stocks and do not constitute any stock recommendation, nor do they represent the fund manager's or the fund's investment direction. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors must be responsible for any investment decisions they make independently. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice to readers of any form, and the author is not responsible for any 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 characteristics and select products that match their own risk tolerance. Past performance of a fund does not predict its future performance. The 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 risk level of the Huabao Oil ETF is R3-Medium Risk, suitable for balanced (C3) and above investors. The appropriateness matching opinion should be based on the sales institution. Sales institutions (including the fund manager's direct sales institutions and other sales institutions) conduct risk assessments on the above funds in accordance with relevant laws and regulations. Investors should promptly pay attention to the appropriateness opinions issued by the fund manager. The opinions on appropriateness from various sales institutions may not be consistent, and the risk level evaluation results of fund products issued by fund sales institutions shall not be lower than the risk level evaluation results made by the fund manager. The fund's risk-return characteristics and risk level in the fund contract may differ due to different considerations. Investors should understand the fund's risk and return situation, carefully select fund products based on their own investment objectives, time horizon, investment experience, and risk tolerance, and bear the risks themselves. The registration of the above funds by the China Securities Regulatory Commission does not indicate a substantive judgment or guarantee of the fund's investment value, market prospects, or returns. Fund investment requires caution.