What are the differences among the China Securities Oil & Gas, Petrochemical Industry, and Specialized Chemical indices?

Why does the AI · Guozheng Oil & Gas Index show greater elasticity when oil prices rise?

In the layout of the energy and chemical sector, the indices that attract more market attention include: Guozheng Petroleum and Natural Gas Index (referred to as “Guozheng Oil & Gas”), CSI Chemical Industry Index (referred to as “Chemical Industry”), and CSI Sub-sector Chemical Industry Theme Index (referred to as “Sub-sector Chemical”). What are the differences among these indices? How should we choose?

From the index positioning perspective, Guozheng Oil & Gas focuses on oil and natural gas exploration and development, oil and gas equipment and services, gas transmission and distribution sales, etc. The Sub-sector Chemical Industry purely focuses on chemical products and chemical industries. The Chemical Industry index adopts a “both ends” approach, spanning both oil & gas and chemical sectors, with broader coverage.

From the top ten constituent stocks, Guozheng Oil & Gas mainly includes companies involved in oil and gas exploration, storage, and transportation. The “Three Big Oil Companies” (PetroChina, CNOOC, Sinopec) each account for over 10%, with a high concentration in the top ten stocks (67.9%). The Chemical Industry index includes both chemical and oil & gas processing companies, such as Wanhua Chemical, Salt Lake Shares, and the “Three Big Oil Companies,” with a moderate concentration in the top ten stocks (55.9%). The Sub-sector Chemical index mainly consists of chemical companies, excluding the “Three Big Oil Companies,” with a relatively low concentration in the top ten stocks (45.2%).

Data source: iFind, as of March 17, 2026.

From the market capitalization structure perspective, Guozheng Oil & Gas exhibits a “polarized” characteristic, with small-cap stocks below 10 billion yuan accounting for as much as 50%, while there are also mega-cap stocks above 300 billion yuan (4%), resulting in relatively high overall elasticity. Both the Chemical Industry and Sub-sector Chemical indices are mainly composed of mid-cap stocks between 100 and 50B yuan, with more balanced market cap distributions, leading to relatively lower elasticity.

Distribution of constituent stocks’ tradable market value

Data source: iFind, March 25.

To sum up, for investing in the “family” of oil companies:

If you are optimistic about rising oil prices and prefer higher elasticity, focus on the Guozheng Petroleum and Natural Gas Index. The E Fund Oil ETF (159181) has an annual management fee of 0.15%, compared to most similar ETFs with a fee rate of 0.50%, offering a significant long-term cost advantage.

If you want to grasp investment opportunities across the entire petrochemical industry chain and pursue relatively balanced allocation in sub-sectors, focus on the CSI Chemical Industry Index. The E Fund Chemical Industry ETF (516570), tracking this index, also has a clear fee advantage (0.15% per year) and ranks first among similar ETFs in scale.

If you are focusing on downstream investments in the petrochemical industry, pay attention to the CSI Sub-sector Chemical Industry Theme Index.

Risk reminder: Funds are subject to risks; investment should be cautious.