Capital expenditure in the chemical industry continues to slow down, and the long-term value of low-cost petrochemical ETFs like Huaxia (159731) is becoming more prominent.

As of 10:00 on May 11, 2026, the China Securities Petrochemical Industry Index increased by 0.36%, with constituent stocks Xingfa Group up 6.25%, Shanghai Petrochemical up 4.67%, Guangwei Refractory Materials up 3.38%, Tongkun Group up 2.07%, and Rongsheng Petrochemical up 1.71%. The Huaxia Petrochemical ETF (159731) rose by 0.20%, with the latest price at 1.01 yuan. In terms of liquidity, as of May 8, the Huaxia Petrochemical ETF had an average daily trading volume of 149 million yuan over the past week. In terms of size, the latest scale of the Huaxia Petrochemical ETF reached 1.1B yuan.

As of May 8, the Huaxia Petrochemical ETF’s net asset value increased by 53.49% over the past year. From a profitability perspective, as of May 8, 2026, since its inception, the Huaxia Petrochemical ETF’s highest single-month return was 15.86%, the longest consecutive months of growth was 10 months, with a maximum cumulative increase of 66.23%, and the average return in rising months was 5.53%. As of May 8, 2026, the Huaxia Petrochemical ETF’s annualized excess return over the benchmark over the past year was 2.75%. As of May 8, 2026, the Huaxia Petrochemical ETF’s Sharpe ratio over the past year was 2.25.

Chang’an Securities stated that, In 2025, capital expenditure in the chemical industry continued to slow down, and the chemical industry’s prosperity level stabilized and oscillated. In late February 2026, the US-Iran conflict erupted, causing crude oil prices to rise rapidly. As a midstream industry, chemical companies benefited from the pulse increase in oil prices, bringing energy arbitrage opportunities and inventory gains. Meanwhile, overseas supply continued to tighten, and domestic chemical industry prices and spreads moved upward in sync.

The Huaxia Petrochemical ETF (159731) and its over-the-counter connections (A: 017855; C: 017856) closely track the China Securities Petrochemical Industry Index. As of April 30, 2026, the top ten holdings of the China Securities Petrochemical Industry Index were Wanhua Chemical, China National Petroleum, Salt Lake Shares, CNOOC, Sinopec, Zangge Mining, Baofeng Energy, Hualu Hengsheng, Satellite Chemical, and Juhua Group, with the top ten holdings accounting for 57.03% of the total. In terms of fees, the management fee rate for the Huaxia Petrochemical ETF is 0.15%, and the custody fee rate is 0.05%, the lowest among comparable funds.