Geopolitical Impact Lasts Longer Than Expected, Focus on Long-term Value of Petrochemical ETF Huaxia (159731)

As of 2:15 PM on March 25, the Huaxia Petrochemical ETF (159731) increased by 0.92%, with top holdings including Hengli Petrochemical, Hengyi Petrochemical, Oriental Shenghong, Rongsheng Petrochemical, and Xingfa Group.

According to industry sources, Iran appears to be adopting a new “precision strategy” targeting the crucial Strait of Hormuz, allowing only specific ships to pass through this key waterway. Although this approach may restore some shipping traffic through the Strait, analysts warn that the global oil market may still be underestimating the risk of further supply shortages associated with this new strategy.

Guojin Securities believes that, based on recent developments in Iran, the US, and Israel, there remains significant uncertainty about the future of this conflict. The true impact on overseas manufacturing will largely depend on the timing and extent of the Strait of Hormuz’s reopening. The forecast suggests that high oil prices are likely to persist, and the impact on the chemical industry may not be short-term, with the duration of influence expected to be significantly extended.

The Huaxia Petrochemical ETF (159731) and its over-the-counter links (A: 017855; C: 017856) closely track the CSI Petrochemical Industry Index. As of February 27, 2026, the top ten holdings of the CSI Petrochemical Industry Index are Wanhua Chemical, China National Petroleum, Salt Lake Shares, Sinopec, CNOOC, Zangge Mining, Hualu Hengsheng, Yuntianhua, Juhua Shares, and Hengli Petrochemical, collectively accounting for 55.9% of the index.