Crude oil fund triggers premium warning; Southern Crude Oil LOF halts trading for the second time during the trading day

On March 3 at midday, the Shanghai Stock Exchange (SSE) announced that, according to an application by Southern Fund Management Co., Ltd., the SSE will suspend trading of the Southern Crude Oil Securities Investment Fund (Securities code: 501018) from intraday real-time starting at 2026-03-03 until market close, starting at intraday real-time.

SSE screenshot

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 the fund unit net asset value on February 26, 2026 was 1.2531 yuan, showing a significant premium. To warn of risks, the fund was halted from the market open on March 3, 2026 until 10:30, and then resumed trading through the midday close, reaching the daily price limit.

In fact, driven by the continued escalation of geopolitical tensions, the international crude oil market has seen intense volatility. On March 2, multiple oil-related exchange-traded open-end funds (LOFs) saw a batch of daily price-limit up moves in the secondary market. By the midday close on March 3, the oil and gas stocks again triggered a new wave of daily limit-ups: China National Petroleum Corporation saw consecutive daily limit-ups, and multiple oil-related LOFs also posted daily limit-ups for two straight days. In addition, global oil and gas energy LOFs such as the Huabao Oil and Gas LOF rose by more than 9%.

It should be noted that oil-related LOF funds have all, in recent days, issued risk warning announcements regarding premiums, with their secondary market trading prices showing a relatively large premium. Currently, several oil-related LOFs have high premium rates, among which the premium rate of the oil fund LOF exceeds 43%, leading its peer funds.

wind data screenshot

A recent research report from China CITIC Securities stated that the tanker freight rate pricing mechanism is set to be reshaped, and geopolitical events strengthen cyclical momentum. Structural opportunities are expected to continue on both the valuation side and the asset side of the tanker market. The restructuring of supply chains caused by geopolitical conflicts has become the core driver of this tanker freight market cycle. The Strait of Hormuz handles about 30% of global crude oil and petrochemical transport; once volatility occurs, it will very likely become a “bullish option” for the tanker cycle, with VLCC elasticity leading the way. The freight rate formation mechanism is being reshaped, and the characteristics of the off-season are weakening. Under a backdrop dominated by geopolitical factors, geopolitical conflict events will strengthen cyclical momentum, and in 2026, profits of leading tanker companies are expected to reach new highs.

(SSE, China CITIC Securities Research, wind data)

(Editor: Xu Nannan)

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