Sinopec ETF Huaxia (159731) benefits from both rising oil prices and industry recovery.

As of 10:40 on Aug 18, the three major A-share indices retreated collectively. Sinopec ETF Huaxia (159731) rose 0.64%, with mixed performance among its constituents; Kingfa Sci. & Tech., Satchem, Tongcheng New Materials, Yangnong Chemical, and Baofeng Energy led the gains.

Data shows that as of 17:00 on Aug 17, 124 A-share listed companies released their interim profit distribution plans for H1 2026, proposing a total cash dividend of RMB 101.85bn (tax inclusive). By sector, chemicals were the most active, followed by machinery and electronics. Overall, listed companies' willingness to reward shareholders has significantly strengthened, with a strong propensity for cash dividends.

CSC Securities noted that during the Kondratieff winter, economic growth slows and geopolitical tensions intensify. Oil, gas, and coal, as strategic physical assets, exhibit inflation-resilient pricing and outperform typical financial assets in stagflationary environments, characterized by wide-range oscillation or upward trend shifts. The investment logic for energy companies is shifting toward 'robust free cash flow + high dividend yield + continuous buybacks'—classic dividend assets.

Sinopec ETF Huaxia (159731) and its feeder funds (017855/017856) closely track the CSI Petrochemical Industry Index, balancing basic chemicals and oil & gas. It maintains high allocation to high-dividend central SOEs like the 'Three Barrels of Oil,' positioning to benefit from rising oil prices and improved upstream profitability, while participating in the recovery of chemical industry sentiment. Meanwhile, these high-dividend central SOE holdings act as a stabilizing anchor, ensuring relatively steady overall performance. The fund management fee is 0.15% p.a. and custody fee is 0.05% p.a., both at the market's lowest levels, maximizing benefits for investors.