Crude oil fund triggers premium warning, Southern Crude Oil LOF halts trading for a second time during the trading session

On the afternoon of March 3, the Shanghai Stock Exchange announced that, according to an application by Southern Fund Management Co., Ltd., this exchange would suspend trading of the Southern Crude Oil Securities Investment Fund (Securities Code: 501018) from intraday commencement on March 3, 2026 until the close of trading.

Screenshot from the Shanghai Stock Exchange

What’s worth noting is that the secondary market trading price of the Southern Crude Oil LOF fund is clearly higher than its net asset value. On March 2, 2026, the closing price of the Southern Crude Oil LOF fund in the secondary market was 1.583 yuan, while on February 26, 2026, the fund unit net asset value was 1.2531 yuan, indicating a significant premium. To warn of risks, the fund was suspended from trading from the market open on March 3, 2026 until 10:30; thereafter, it resumed trading and hit the daily limit up through the midday close.

In fact, driven by the continuing escalation of geopolitical tensions, the international crude oil market has seen dramatic fluctuations. On March 2, multiple oil-related listed open-ended funds (LOFs) saw a batch of daily limit-up moves in the secondary market. By the midday close on March 3, the oil and gas stocks once again surged into a wave of daily limit-ups; China National Petroleum Corporation (CNPC) kept hitting limit-ups, and multiple oil-related LOFs also hit limit-ups for two consecutive days. In addition, global oil and gas energy LOFs, including Huabao Oil & Gas LOF, rose by more than 9%.

It should be noted that all oil-related LOF funds have recently released premium-risk warning announcements, as the trading prices in the secondary market have shown sizable premiums. At present, several oil-related LOFs have relatively high premium rates; among them, the premium rate of oil funds LOF exceeds 43%, leading their peer group.

Wind data screenshot

CITIC Securities’ latest research report points out that the tanker freight rate mechanism is set for reshaping, and geopolitical events will strengthen cyclical momentum. Structural opportunities on both the freight valuation side and the asset side are expected to continue. The reconstruction of supply chains brought about by geopolitical conflicts has become the core driver of this tanker cycle. The Strait of Hormuz handles about 30% of global crude oil and petrochemical transportation; once volatility occurs, it is highly likely to become the tanker cycle’s “bullish option,” with VLCCs leading the elasticity. The freight rate formation mechanism is being reshaped, and off-season characteristics are weakening. Against a backdrop dominated by geopolitical factors, geopolitical conflict events will reinforce cyclical momentum, and the profits of leading tanker companies in 2026 are expected to reach new highs.

(Shanghai Stock Exchange, CITIC Securities research, Wind data)

(Edited by: Xu Nannan)

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