POE is experiencing a full-scale boom, with leading enterprises accelerating their layout. The layout value of Petrochemical ETF Huaxia (159731) stands out.

On the morning of August 3, the CSI Petrochemical Industry Index opened low but rose, turning red during trading, and is now up slightly by about 0.25%. Component stocks showed mixed performance, with Orient Shenghong, Hengli Petrochemical, Xinfengming, and Lihong Xinke leading the gains.

On July 25, China National Petroleum Corporation (CNPC) achieved a new milestone as its first industrialized solution-process POE unit—the Blue Ocean New Materials 100,000-ton/year POE plant's octene production line extrusion granulation unit main motor completed its single-machine trial run successfully on the first attempt.

Currently, China's domestic POE industry has entered a "comprehensive boom" phase. Statistics show that planned and under-construction capacity in the domestic POE sector exceeds 6 million tons. Leading enterprises such as CNPC, Sinopec, and Wanhua Chemical are accelerating their 布局 (layout), while private refining and chemical companies like Orient Shenghong and Rongsheng Petrochemical, along with specialized and innovative enterprises like Dawn Co., Ltd., are following suit. They are focusing on the R&D of different POE grades, forming an industrial breakthrough pattern led by industry giants with diversified layouts.

POE possesses characteristics of both plastics and rubber, with downstream applications mainly in photovoltaic films, automotive modification, foaming, wire and cable manufacturing, and packaging sectors. Great Wall Securities believes that with the increase in POE product output and AI technology empowering production operations, the company's advantages in full industry chain integration and high-end transformation are expected to enhance its long-term competitiveness.

Petrochemical ETF Huaxia (159731) and its feeder funds (017855/017856) closely track the CSI Petrochemical Industry Index. According to the Shenwan Level I industry distribution, the basic chemicals sector accounts for 63.34%, and the petroleum and petrochemicals sector accounts for 34.39%. This allows investors not only to lock in the value of upstream energy resources but also to share in the profit recovery of downstream chemical products. Under the trend of "East Rising, West Falling," domestic enterprises benefit from the reshaping of the global chemical industry landscape.