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

On March 3rd midday, the Shanghai Stock Exchange announced that, upon application by Southern Fund Management Co., Ltd., trading of the Southern Crude Oil Securities Investment Fund (Securities Code: 501018) was suspended from the market opening on March 3, 2026, until the close of trading.

Shanghai Stock Exchange screenshot

Notably, the secondary market trading price of the Southern Crude Oil LOF Fund is significantly 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 net asset value per share on February 26, 2026, was 1.2531 yuan, indicating a substantial premium. To warn of risks, the fund was suspended from trading from market open on March 3, 2026, until 10:30 AM, after which it resumed trading and hit the daily limit up by midday.

In fact, due to the ongoing escalation of geopolitical tensions, the international crude oil market has experienced intense volatility. On March 2, multiple oil-related listed open-ended funds (LOFs) saw a surge in their secondary market trading limits. By midday on March 3, oil and gas stocks surged again, with China National Petroleum Corporation (CNPC) hitting the daily limit multiple times, and several oil-related LOFs also hitting the limit for two consecutive days. Additionally, global oil and gas energy LOFs, Huabao Oil & Gas LOF, and others rose over 9%.

It should be noted that all oil LOF funds recently issued risk warning notices regarding premium risks, as their secondary market trading prices have shown significant premiums. Currently, many oil LOFs have high premium rates, with some exceeding 43%, leading the category.

Wind data screenshot

CITIC Securities’ latest research report indicates that the oil tanker freight rate mechanism is undergoing a reshaping, with geopolitical events strengthening cyclical momentum. Structural opportunities in both freight valuation and asset structure are expected to continue. The supply chain restructuring caused by geopolitical conflicts has become the core driver of this oil shipping cycle. The Strait of Hormuz accounts for about 30% of global crude oil and petrochemical transportation. Any fluctuations there are likely to become a “bullish option” for the tanker cycle, with VLCCs leading the elasticity. The freight rate formation mechanism is being reshaped, and the seasonal characteristics are weakening. Under the influence of geopolitical factors, conflicts will strengthen cyclical momentum, and profits for leading oil tanker companies are expected to reach new highs in 2026.

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

(Edited by: Xu Nannan)

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