Oil prices continue to rise, with the Huaxia Oil ETF (159189) up over 3%, while Jereh Shares, Shuifa Gas, and China National Petroleum Corporation's subsidiary Zhongman Petroleum hit their daily limit.

On July 22 local time, U.S. President Trump stated that if Iran fires upon ships in the Strait of Hormuz, the United States will bomb Iranian bridges and power plants. International crude oil futures settlement prices rose significantly. WTI crude oil futures closed up 2.54% at $86.48 per barrel; Brent crude oil futures closed up 4.72% at $95.31 per barrel.

Everbright Securities' research report believes that the average Brent crude oil price in the second quarter saw significant year-on-year and quarter-on-quarter increases, directly benefiting the upstream extraction business of the "Three Barrels of Oil." Meanwhile, previous low-cost raw material and finished product inventories are expected to release considerable inventory gains during this price hike cycle, further boosting the profitability of the refining sector. If the oil price center continues to rise, the profit elasticity of upstream businesses will be considerable, and high oil prices can effectively transmit downstream, driving up the prices of major petrochemical products and leading to a significant recovery in overall profitability.

As of 10:17 on July 23, Huaxia Petroleum ETF (159189) rose 3.11%, with portfolio stocks Jereh Shares, Shuifa Gas, and Zhongman Petroleum hitting the daily limit, while Qian Neng Heng Xin rose over 15%; Huaxia Petrochemical ETF (159731) rose 1.33%, led by portfolio stocks Salt Lake Industry, Zhangjiagang Gangyuan Mining, Shanghai Petrochemical, and Hengyi Petrochemical.

Huaxia Petrochemical ETF (159731) and its feeder funds (017855/017856) track the CSI Petrochemical Industry Index, focusing on the "Big Energy" security logic. It not only allows investors to share in the profit recovery of downstream chemical products but also locks in the value of upstream energy resources through heavy allocation to refining leaders like the "Three Barrels of Oil," demonstrating stronger earnings resilience during an oil price uptrend.

Huaxia Petroleum ETF (159189) closely tracks the CNI Petroleum & Natural Gas Index. From the perspective of Shenwan Level I industry distribution, the weight of petroleum and petrochemicals is 51.49%. Against the backdrop of ongoing geopolitical risks and low global oil and gas inventory levels, it will benefit from the industrial dividends brought by domestic oil and gas companies through upstream-downstream integration and diversification of oil and gas sources.