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

On March 23, amid a market-wide plunge, multiple oil funds collectively hit the daily limit-up, standing out as a unique 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. the same day, also warning of the risk of trading price premiums in the secondary market.

Multiple Oil Funds Announce Suspension

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 Hua An Fund’s Oil Fund LOF (160416) all hit the 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 year-to-date returns are all oil funds. As of March 23, Southern Oil LOF (501018) led with a 62.92% increase, 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 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 to its net asset value, with a large premium. To protect investors’ interests, trading will be suspended from market open on March 24 until 10:30 a.m. the same day, resuming trading at 10:30 a.m. on March 24. 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 new 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. the same day. If the premium in secondary market trading does not effectively decrease by then, the fund reserves the right to apply for temporary intraday suspension or extended suspension through the Shenzhen Stock Exchange to alert 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, Hua An Fund reminded that recently, the Hua An S&P Global Oil Index Securities Investment Fund (LOF) (market abbreviation: Oil Fund LOF, code: 160416) has experienced a significant premium in secondary market trading, with prices deviating 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 days of gains.

Oil & Gas Theme Funds Rapidly Submitted

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

Prior to this, several oil & gas theme products had already been approved this year, with six of them being ETFs, most with a scale around 200 million yuan.

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

The report also noted 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 is estimated that the global short-term supply gap could reach 2 million barrels per day.

Meanwhile, the 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 increased, 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 & gas producers are expected to support China’s energy security and independence; with a relatively complete supply chain domestically, industry leaders may benefit.