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

On March 3 at noon, the Shanghai Stock Exchange announced that, based on the application from Southern Fund Management Co., Ltd., the exchange will suspend trading of the Southern Crude Oil Securities Investment Fund (stock code: 501018) from the start of trading on March 3, 2026, until the market closes.

Screenshot from the Shanghai Stock Exchange

It is worth noting that the trading price of the Southern Crude Oil LOF Fund in the secondary market is significantly higher than its net 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 net asset value of the fund share on February 26, 2026, was 1.2531 yuan, indicating a significant premium. To warn of risks, the fund will be suspended from trading starting at the market open on March 3, 2026, until 10:30 AM, after which trading will resume and reach the daily limit by the noon close.

In fact, due to the continuous escalation of geopolitical tensions, the international crude oil market has been experiencing severe volatility. On March 2, several listed open-ended funds (LOF) related to oil saw a surge in trading prices in the secondary market. By the noon close on March 3, oil and gas stocks were again on the rise, with PetroChina hitting the daily limit, and several oil-related LOFs also hitting the limit for two consecutive days. Additionally, global oil and gas energy LOFs, such as Huabao Oil and Gas LOF, increased by over 9%.

It is important to note that oil-related LOF funds have recently issued announcements warning of premium risks, as the trading prices in the secondary market have shown significant premiums. Currently, several oil-related LOFs have high premium rates, with the premium rate of the oil fund LOF exceeding 43%, leading among similar funds.

Screenshot of Wind data

CITIC Securities’ latest research report points out that the tanker freight pricing mechanism is undergoing a reshaping, and geopolitical events are strengthening cyclical momentum. Structural opportunities on the valuation and asset sides of shipping are likely to continue, with the reconstruction of supply chains brought about by geopolitical conflicts becoming the core driver of this oil shipping cycle. The Strait of Hormuz handles about 30% of the world’s crude oil and petrochemical transportation; fluctuations in this region will likely become a “bullish option” for the tanker cycle, with VLCC (Very Large Crude Carrier) elasticity leading the way. The freight pricing mechanism is being reshaped, with seasonal characteristics weakening. Under the dominance of geopolitical factors, geopolitical conflict events will strengthen cyclical momentum, and in 2026, leading tanker profits are expected to reach new highs.

(Shanghai Stock Exchange, CITIC Securities Research, Wind Data)

(Editor: Xu Nannan)

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