The US and Iran have reached a ceasefire agreement, causing intense market volatility. Focus on the Petrochemical ETF Huaxia (159731) cycle opportunities.

As of 10:00 a.m. on April 8, the Huaxia Petrochemical ETF (159731) is down 1.17%. Its top gainers among holdings include Tongkun Co., Ltd., Lanxiao Technology, Kingfa Science & Technology, Xin Fengming, and others. The Huaxia Petrochemical ETF saw net inflows of 16.27 million yuan of funds on the previous day.

On the news front, Pakistan’s Prime Minister Sharif has invited delegations from Iran and the United States to travel to Islamabad to hold negotiations. Sharif said the ceasefire between the two sides took effect at 3:30 a.m. on April 8, Iran time (8:00 a.m. Beijing time). After the ceasefire announcement was made public, oil prices instantly fell by more than 10%.

Orient Securities believes that the price-ratio fluctuations between oil and coal have become a long-standing strength supporting costs for chemical products. China’s resource endowment of more coal and less oil with less gas stands out in dealing with the current round of oil price shocks. After the Middle East conflict, the clearing of chemical production capacity may accelerate going forward, and the narrative of “rising in the east and setting in the west” will continue to be strengthened.

The Huaxia Petrochemical ETF (159731) and its feeder funds (017855/017856) closely track the CSI Petrochemical Industry Index. Driven by both basic chemicals and oil & petrochemicals, they also cover high-dividend and high-growth assets. Key weight holdings include Wanhua Chemical (the global MDI leader), China National Petroleum (a leading domestic oil and gas company), Sinopec (a leading domestic refining and chemicals company), Qinghai Salt Lake (a leading domestic potash fertilizer company), and others.

Economic Daily News