Core physical assets undergo a value revaluation, Petroleum ETF China Merchants (159197) listed today

Against the backdrop of deep adjustments in the global energy landscape and the accelerated advancement of energy security strategies, oil and gas assets are standing at the intersection of multiple logic flows, with international oil prices once surpassing the $100 mark to reach multi-year highs. On April 2, 2026, the Petroleum ETF 招商 (159197) officially listed on the Shanghai Stock Exchange.

Unlike a single-segment specialized index, the Petroleum ETF 招商 (159197) tracks the Guozheng Oil & Gas Index, covering the entire chain of oil and gas exploration and development, equipment services, refining sales, and gas transmission and distribution, achieving comprehensive allocation across upstream and downstream industries. As of March 31, the combined weight of the “Three Big Oil” companies was 39.82%, with the top ten weights totaling 69.48%.

Currently, with increasing global geopolitical uncertainties, energy security has risen to a core national strategic position. In China’s 14th Five-Year Plan, energy security is listed as a key task, and domestic upstream oil and gas capital expenditure continues to grow. According to statistics, by 2025, China’s oil, petrochemical, and CNOOC oil and gas equivalents are projected to increase by 2.5%, 1.9%, and 6.9% year-on-year, respectively, maintaining high capital spending focused on domestic exploration and development, shale oil and gas, deep-sea oil and gas, among others. This directly boosts demand for oilfield service equipment and has become a true “main force” in supply security, expected to fully benefit from the current domestic energy development acceleration dividend.

From a medium- to long-term perspective, the Guozheng Oil & Gas Index has demonstrated excellent historical performance. Wind data shows that as of March 31, 2026, the index’s cumulative five-year return reached 103.60%, with an annualized Sharpe ratio of 0.8, outperforming similar oil and gas indices in risk-adjusted returns.

Data source: Wind, as of March 31, 2026. The index’s gains and losses are for reference only, not indicative of future performance nor representative of specific fund performance. Annualized volatility: calculated over weekly periods, using simple returns, with annualized volatility = volatility * 52^0.5. Annualized Sharpe ratio: calculated over weekly periods, using simple returns, with the risk-free rate set as the one-year fixed deposit rate ( pre-tax ). Sharpe ( annualized ) = (average return after annualization - risk-free rate) / annualized volatility. The Sharpe ratio is a risk-adjusted return metric; generally, the higher the ratio, the higher the excess return per unit of total risk. Past performance of the index does not predict future results and does not guarantee fund investment returns or any investment advice. Due to the relatively short operation period, the index may not reflect all stages of market development.

Looking at full calendar years, from 2021 to 2025, the index increased by 33.93%, 0.05%, 7.01%, 10.90%, and 10.13%, respectively, fully demonstrating the allocation value and cycle-crossing resilience of core energy assets.

Performance of mainstream oil indices over the past five calendar years:

Data source: Wind, as of December 31, 2025. The index’s gains and losses are for reference only, not indicative of future performance nor representative of specific fund performance. Past performance does not predict future results and does not guarantee investment returns or any investment advice. The index’s relatively short operation period may not reflect all market development stages.

From a medium- to long-term perspective, as global commodity prices shift upward, physical assets are expected to undergo a valuation re-rating. CITIC Construction Investment points out that, amid slowing economic growth and intensified geopolitical games, oil, gas, and coal—being irreplaceable strategic physical assets—have prices that not only demonstrate resilience against inflation but also show significant volatility or central upward shifts in stagflation environments, outperforming typical financial assets. The investment logic for energy companies is transforming into dividend assets characterized by “free cash flow + high dividends + ongoing buybacks.”

As of the latest data, the Guozheng Oil & Gas Index’s P/E ratio (TTM) is approximately 16.79 times, with a dividend yield of about 3.32%, showing clear advantages among similar indices. Institutional analysis suggests that high dividends are backed by stable cash flows and high dividend traditions of leading state-owned enterprises like the “Three Big Oil” companies. Under the comprehensive push for central enterprise market value management assessments, the dividend payout ratio of central and state-owned enterprises is expected to continue rising, further strengthening the high dividend advantage of top oil companies.

Data source: Wind, as of March 31, 2026. Past performance of the index does not predict future results nor guarantee fund investment returns or any investment advice. The index’s relatively short operation period may not reflect all market development stages.

Risk warning: Funds are subject to risks; investments should be cautious.