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

On March 23, amid a market-wide plunge, multiple oil funds collectively hitting their daily limit ups stood out as a rare highlight.

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 trading would be suspended from the market open 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 surging significantly. Disruptions in the Strait of Hormuz, increased production cuts in the Middle East to 8.2 million barrels per day, have continued to push oil prices higher.

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

The influx of capital has also raised market risk warnings. On the evening of March 23, China Asset Management announced that its China Asset Management Oil Securities Investment Fund (QDII-LOF) (fund code: 160723, market abbreviation: China Oil LOF) was trading at a significant premium over its net asset value, with a large gap. 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. Since February, the fund has been rising continuously, with a nearly 48.56% increase over the past month. As of the close on March 23, China Oil LOF (160723) hit a record high of 2.904 yuan.

E Fund also announced that to protect investors, E Fund Oil LOF (161129) will be suspended from market open on March 24 until 10:30 a.m. that day. If the premium remains uncorrected by then, the fund reserves the right to request a temporary intra-day suspension or extension of the suspension from the Shenzhen Stock Exchange to warn the market. The fund has also performed strongly over the past month, with a gain of over 48%, reaching a new high of 2.387 yuan as of March 23.

Additionally, Hu’an Fund reminded that recently, 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, deviating from its previous valuation date net asset value. Investors should be aware of the risk of trading price premiums; blind investment could lead to significant losses. On March 23, Oil Fund LOF (160416) also closed at the daily limit up, marking three consecutive days of gains.

Oil & Gas Theme Funds Reported in Clusters

Affected by the Middle East situation, oil and gas funds have become a hot theme attracting significant capital this year, with new funds also 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 linked funds, and GF Fund has filed an off-exchange launched index fund focused on oil and gas.

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

Huatai Securities’ latest research report states 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, shifting from “short-term shock” to “medium-term disturbance.”

The report also notes 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, ongoing blockade of the Strait of Hormuz has led to saturation of oil reserves 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 an average of $90 per barrel (previously $78). Leading domestic oil and gas producers are expected to support China’s energy security and independence; companies with complete supply chains and industry advantages are likely to benefit.