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, upon application by Nanfang Fund Management Co., Ltd., the SSE would suspend trading of the Nanfang Crude Oil Securities Investment Fund (security code: 501018) intraday from March 3, 2026, until the market close.

SSE screenshot

What’s particularly notable is that the secondary market trading price of the Nanfang Crude Oil LOF fund is clearly higher than its net asset value. On March 2, 2026, the fund’s closing price in the secondary market was 1.583 yuan, while on February 26, 2026, the fund’s unit net asset value was 1.2531 yuan, indicating a significant premium. To warn of risks, the fund was suspended from the opening of trading on March 3, 2026 until 10:30, and then resumed trading, continuing the limit-up to the midday closing.

In fact, driven by the ongoing escalation of geopolitical tensions, the international crude oil market has seen intense volatility. On March 2, multiple oil-related exchange-listed open-end funds (LOFs) saw a batch of limit-up moves in the secondary market. At the midday close on March 3, the oil and gas stocks once again sparked a wave of limit-ups: China Petroleum (CNPC) hit consecutive limit-ups, and several oil-related LOFs also posted limit-ups for two consecutive days. In addition, global oil and gas energy LOFs, such as Huabao Oil & Gas LOF, rose by more than 9%.

It is worth noting that oil-related LOF funds have all recently issued risk warning announcements regarding premiums, with secondary market trading prices showing substantial premium levels. At present, the premium rates of several oil-related LOFs are relatively high; among them, the premium rate of the oil fund LOF exceeds 43%, leading its peer group.

Wind data screenshot

A recent research report from Citic Securities points out that the tanker freight rate mechanism is set for a reshaping, and geopolitical events strengthen cyclical momentum. Structural opportunities are expected to continue on both the valuation side and the asset side of shipping; the supply-chain restructuring brought about by geopolitical conflicts has become the core driver of the current tanker shipping cycle. The Strait of Hormuz handles roughly 30% of global crude oil and petrochemical transportation; once volatility occurs, it is likely to become a “bullish option” for the tanker cycle, with VLCCs leading in elasticity. The freight rate formation mechanism is being reshaped, and the seasonal characteristics of the off-peak period are weakening. With geopolitics as the dominant backdrop, geopolitical conflict events will strengthen cyclical momentum, and profits of leading tanker shipping companies in 2026 are expected to hit new highs.

(SSE, Citic Securities research, Wind data)

(Editor: Xu Nannan)

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