Huicheng Environmental Protection's waste plastic pyrolysis technology has passed the assessment; constituent stocks of the Petrochemical ETF Huaxia (159731) are expected to undertake and benefit from this technological change.

On the afternoon of July 27, the CSI Petrochemical Industry Index oscillated upward, rising by over 0.7%, with component stocks such as Xinfengming, Hengyi Petrochemical, Guangdong Hongda, and Do-Fluoride leading the gains. In terms of related ETFs, the Petrochemical ETF Huaxia (159731), which has the lowest fee tier, rose by over 1.2%, highlighting its layout value.

Huicheng Environmental Protection announced on July 26 that its holding subsidiary's constructed 200,000-ton deep cracking industrial test unit for mixed waste plastics has passed a 72-hour full-load operation assessment. During this period, 1,744.2 tons of waste plastics were processed, verifying the maturity of the technology. This news marks a key step toward the industrialization of chemical recycling technology for waste plastics, directly benefiting the "refining and trading" and "chemical products" segments in the petrochemical industry chain.

The cracking of waste plastics can produce basic chemical raw materials such as oil products and ethylene, which are expected to replace some crude oil routes, reduce raw material costs, and have long-term structural impacts on 细分 industries such as crude oil extraction and traditional refining. In the CSI Petrochemical Industry Index, the sectors with the highest weight are "Refining and Chemicals" (22.37%) and "Fluorochemicals" (13.97%). Related component stocks may benefit from technological route changes or face a reshaping of the competitive landscape.

The Petrochemical ETF Huaxia (159731) and its feeder funds (017855/017856) closely track the CSI Petrochemical Industry Index. As of June 30, 2026, the top ten weighted stocks were Wanhua Chemical, PetroChina, Salt Lake Industry, Juhua Co., Ltd., Sinopec, CNOOC, Do-Fluoride, Zangge Mining, Baofeng Energy, and Shengquan Group, with the top ten weighted stocks accounting for a combined proportion of 53.46%.